For coal gas, the fuel cost is based on the values shown in table 2 (American...
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For coal gas, the fuel cost is based on the values shown in table 2 (American Dollars). The bungalow owner took a loan from a bank to be repaid in 5 years with 10% compound interest. The initial installation cost is shown in table 2. The following payments apply: ● Loan annual payment = 24.66 USD per 100 USD • Depreciation 5% of the initial installation cost Complete table 3, and based on the initial cost, total annual running cost and total annual operating cost, decide which of the two energy sources you would select to provide the heat requirements for the bungalow. Justify your choice. (3 marks) Fuel Coal Gas Natural Gas Tehli 2 Unit Cost First 52 therms per quarter at 23.36p per therm. Further therms in same quarter at 16.43p per therm, First 52 therms per quarter at 22.8p per therm. Further therms in same quarter at 15.30p per therm. Table 3: Annual operating costs for oil and solar energy sources Gas fired (Coal Solar Type of system Gas) $1000.00 Installation cost Annual payment on loan Annual depreciation cost Annual fuel cost Annual maintenance cost Annual standing charges Extra rates payable per year Total amount running cost Total annual cost $9.5 $8 $15 $2000.00 0 0 For coal gas, the fuel cost is based on the values shown in table 2 (American Dollars). The bungalow owner took a loan from a bank to be repaid in 5 years with 10% compound interest. The initial installation cost is shown in table 2. The following payments apply: ● Loan annual payment = 24.66 USD per 100 USD • Depreciation 5% of the initial installation cost Complete table 3, and based on the initial cost, total annual running cost and total annual operating cost, decide which of the two energy sources you would select to provide the heat requirements for the bungalow. Justify your choice. (3 marks) Fuel Coal Gas Natural Gas Tehli 2 Unit Cost First 52 therms per quarter at 23.36p per therm. Further therms in same quarter at 16.43p per therm, First 52 therms per quarter at 22.8p per therm. Further therms in same quarter at 15.30p per therm. Table 3: Annual operating costs for oil and solar energy sources Gas fired (Coal Solar Type of system Gas) $1000.00 Installation cost Annual payment on loan Annual depreciation cost Annual fuel cost Annual maintenance cost Annual standing charges Extra rates payable per year Total amount running cost Total annual cost $9.5 $8 $15 $2000.00 0 0
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To complete Table 3 and determine the total annual running cost and total annual operating cost for the coal gas and natural gas options we need to calculate the annual payment on the loan annual depr... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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