Page 313 - Analysis, Synthesis and Design of Chemical Processes, Third Edition
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Figure 10.5 illustrates the principles behind this method. From the figure, we can see that the cost of the
initial purchase will be spread out over the operating life of the equipment. The EAOC is expressed by
Equation (10.3).
Figure 10.5 Cash Flow Diagrams Illustrating the Concept of Equivalent Annual Operating Cost
(10.3)
Example 10.8 illustrates this method.
Example 10.8
Compare the stainless steel and carbon steel pumps in Example 10.7 using the EAOC method.
For the carbon steel pump,
For the stainless steel pump,
