Question: analyze each case and decide which one is the best 5-100 Florida Power and Light has committed to building a solar power plant. JoAnne, an
analyze each case and decide which one is the best
5-100 Florida Power and Light has committed to building a solar power plant. JoAnne, an IE working for FPL has been tasked with evaluating the three current designs. FPL uses an interest rate of 10% and a 20-year horizon. Design 1: Flat Solar Panels A field of "flat" solar panels angled to best catch the sun will yield 2.6 MW of power and will cost $87 million initially with first-year operating costs at $2 million, growing $250,000 annually. It will produce electricity worth $6.9 million the first year and will increase by 8% each year thereafter. Design 2: Mechanized Solar Panels A field of mechanized solar panels rotates from side to side so that they are always positioned parallel to the sun's rays, maximizing the production of elec- tricity. This design will yield 3.1 MW of power and will cost $101 million initially with first-year operat- ing costs at $2.3 million, growing $300,000 annually. It will produce electricity worth $8.8 million the first year and will increase 8% each year thereafter. Design 3: Solar Collector Field This design uses a field of mirrors to focus the sun's rays onto a boiler mounted in a tower. The boiler then produces steam and generates electricity the same way a coal-fired plant operates. This system will yield 3.3 MW of power and will cost $91 mil- lion initially with first-year operating costs at $3 million, growing $350,000 annually. It will produce electricity worth $9.7 million the first year and will increase 8% each year thereafter
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
