Question

Two alternative piping schemes are being considered by a water treatment facility. Head and horsepower are reflected in the hourly cost of operation (information not needed for this problem). On the basis of a 10-year life and an interest rate of 12%, what is most nearly the number of hours of operation per year at which Alternative B becomes more cost efficient?

	Alternative A	Alternative B
Pipe diameter	4 in	6 in
Head loss for required flow	48 ft	26 ft
Size motor required	20 hp	7 hp
Energy cost per hour of operation	$0.30	$0.10
Cost of motor installed	$3600	$2800
Cost of pipes and fittings	$3050	$5010
Salvage value at the end of 10 years	$200	$280

1. 1000 hr
2. 3000 hr
3. 5000 hr
4. 6000 hr

Answer 1

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