A steam generator is needed in the design of new mini-power
plant. This generator can
be purchased with two different specification proposals, A or B.
Proposal A has life
of 15 years, a first cost of RM45,000 to buy with estimated an
annual saving of
RM3,500 per year and estimated for an annual operating &
maintenance cost of RM750
per year. A salvage value of RM10,700 and one-off overhaul in year
9 that cost RM
1,500. Proposal B has a...