In an effort to reduce pipe breakage, water hammer, and product agitation, a Fre

Question

In an effort to reduce pipe breakage, water hammer, and product agitation, a French chemical company plans to install several chemically resistant pulsation dampeners. The cost of the dampeners today is 91,000, but the chemical company has to wait until a permit is approved for its bidirectional port-to-plant product pipeline. The permit approval process will take at least 2 years because of the time required for preparation of an environmental impact statement. Because of intense foreign competition, the manufacturer plans to increase the price only by the inflation rate of 9% each year. Determine the cost of the dampeners in 3 years in terms of (a) then-current euros and (b) constant-value euros? The cost of dampeners in terms of then-current euros is The cost of dampeners in terms of constant-value euros is

Explanation / Answer

The cost of dampners in terms of then current euros is (91000*(1-0.09)^2)

€75,357.1

The cost of dampners in terms of constant value Euros is €91000

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.