A chemical engineer is considering two sizes ofpipes for
Chapter 6, Problem 6.25(choose chapter or problem)
A chemical engineer is considering two sizes ofpipes for moving distillate from a refinery to thetank farm. A small pipeline will cost less to purchase(including valves and other appurtenances),but will have a high head loss and, therefore, ahigher pumping cost. The small pipeline will cost$1.7 million installed and have an operating cost of$12,000 per month. A larger-diameter pipeline willcost $2.1 million installed, but its operating costwill be only $8000 per month. Which pipe size ismore economical at an interest rate of 1% permonth on the basis of an annual worth analysis?Assume the salvage value is 10% of the first costfor each pipeline at the end of the 10-year project
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