Page 345 - Analysis, Synthesis and Design of Chemical Processes, Third Edition
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equipment do you recommend be purchased?


                         b.   Above what internal hurdle rate would you recommend project A?


                         Your company is considering modifying an existing distillation column. A new reboiler and
                         condenser will be required, along with several other peripherals. The equipment lists are as follows.



















                    17.



















                         The internal hurdle rate for comparison of investments is set at 12% p.a. Which option do you
                         recommend?


                         Because of corrosion, the feed pump to a batch reactor must be replaced every three years. What is
                         the capitalized cost of the pump?


                    18. Data:
                              Purchased cost of pump = $35,000
                              Installation cost = 75% of purchased cost
                              Internal hurdle rate = 10% p.a.


                         Three alternative pieces of equipment are being considered for solids separation from a liquid slurry.







                    19.







                         If the internal hurdle rate for this project is 11% p.a., which alternative do you recommend?
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