A 600-ton press used to produce composite material fuel cell components for automobiles using proton exchange membrane (PEM) technology can reduce the weight of enclosure parts up to 75%. At MARR = 12% per year, calculate (a) capital recovery and (b) annual revenue required. Installed cost = $3.8 million n = 12 years, Salvage value = $250,000, Annual operating costs _ $350,000 to start increasing by $25,000 per year
Given;
Installed cost (P) =$3.8 million
n=12
Salvage value (S) = $250,000
Annual operating cost (A) = $350000
Operating cost I increases by(G) =$25000
MARR = 12%
a) The value of capital recovery
The capital recovery is -$603112
b)Annual revenue required
of
The annual revenue required is -$1057854.5
Comments