Question

If a waste heat exchanger saves $1,000,000 per year and will last 7 years, how much...

If a waste heat exchanger saves $1,000,000 per year and will last 7 years, how much can you pay for the waste heat exchanger (total installation cost) if your company's MARR is a 30%?

$ 3,300,000

$ 2,802,100

$ 356,900

None of the above
Engineering   Electrical-Engineering   
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Homework Answers

Answer #1

We have given the values..

Profit = $1000000

life of equipment = 7

Minimum attractive rate of return (MRR) = 30%

AS WE KNOW EQN FOR FINDING PROFIT IN A YEAR =

Therefore 1000000 =  ,where x is the total installation cost.

we get  ...ie $476,190

by this we can select "non of these option" as the answer of this question.

THANKYOU SIR/MADAM...Hope this helped you.

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