2. A steam generator is needed in the design of a new power plant. This generator can...
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Question:
2. A steam generator is needed in the design of a new power plant. This generator can be fired by three different fuels, A, B or C, with the following cost shown in Table 6-2. If the study period is 20 years and MARR is 8% per year, which type of the fuel is most economical?
Table 6-2
| Alternative A | Alternative B | Alternative C |
Installed investment | $30,000 | $55,000 | $180,000 |
Annual fuel expense | $97,500 | $20,000 | $5,000 |
Useful life (years) | 20 | 20 | 20 |
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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