A high-pressure steam system passes 180°C condensate (saturated liquid) through a steam trap to an
atmospherically vented condensate receiver tank. If the steam trap is working properly, how much of the
condensate mass can be lost out the vent of the receiver tank in the form of flash steam?
A piece of equipment costs $250,000 to buy and install. The annual operating cost for the equipment is
$50,000 per year. The equipment will last 15 years. After 15 years, the equipment will have no net salvage
value. The annual interest rate is 10%. What is the present value of the life-cycle cost to own and operate the
equipment? Use end-of-year annual cash flow analysis.