(b) (10 pts) While running his experiments the scientist discovers that the optimum water temperature for...

 

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(b) (10 pts) While running his experiments the scientist discovers that the optimum water temperature for sugar consumption by the microorganisms is 35C. The amount of power (in kW) need to keep the water in the reactor at the optimum temperature is 10,450 kW. The tank has an upfront purchase price of $5,000, it is on for 24 hours a day for one full year and the price of electricity is $0.2 per kWhr. Cleaning supplies cost $60 and must be purchased/used at least once a month. What is the present value for this set-up if it will be running for 5 years? Assume a discount rate of 8%. (b) (10 pts) While running his experiments the scientist discovers that the optimum water temperature for sugar consumption by the microorganisms is 35C. The amount of power (in kW) need to keep the water in the reactor at the optimum temperature is 10,450 kW. The tank has an upfront purchase price of $5,000, it is on for 24 hours a day for one full year and the price of electricity is $0.2 per kWhr. Cleaning supplies cost $60 and must be purchased/used at least once a month. What is the present value for this set-up if it will be running for 5 years? Assume a discount rate of 8%.