A manufacturer of hydraulic equipment is trying to determine whether it should use monofl ange double block and bleed (DBB) valves or a multi-valve system (MVS) for chemical injection. The costs are shown below. Use an AW-based rate of return analysis and a MARR of 18% per year to determine the better of the two options.
|
|
DBB
|
MVS
|
|
First cost, $
|
40,000
|
71,000
|
|
Annual cost, $ per year
|
60,000
|
65,000
|
|
Salvage value, $
|
0
|
18,000
|
|
Life, years
|
2
|
4
|