The electric power supply for a new industrial complex is being planned, and you are asked...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The electric power supply for a new industrial complex is being planned, and you are asked to compare the cost of constructing a completely new electric generating system to the cost of buying power from a nearby utility already in existence. Find the equivalent annual cost of each alternative. In either case, i = 12 percent, and the system will last 25 years. All annual costs are charged at the end of the year. Alternative A. Construct a new system. cost of new construction = $25,000,000 O&M cost = $3,000,000/yr for the first 3 yr, increasing by 6%/yr for every year thereafter ($3,180,000 at EOY 4, $3,370,800 at EOY 5, etc.) salvage value at EOY 25= $5,000,000 Alternative B. Purchase electric power from an existing nearby electric company on a long-term, 25-year contract for $6,000,000 per year, with no escalation clauses. All neces- sary construction is paid for by the neighboring utility. Find the equivalent annual cost of alternative A, and compare with alternative B. The electric power supply for a new industrial complex is being planned, and you are asked to compare the cost of constructing a completely new electric generating system to the cost of buying power from a nearby utility already in existence. Find the equivalent annual cost of each alternative. In either case, i = 12 percent, and the system will last 25 years. All annual costs are charged at the end of the year. Alternative A. Construct a new system. cost of new construction = $25,000,000 O&M cost = $3,000,000/yr for the first 3 yr, increasing by 6%/yr for every year thereafter ($3,180,000 at EOY 4, $3,370,800 at EOY 5, etc.) salvage value at EOY 25= $5,000,000 Alternative B. Purchase electric power from an existing nearby electric company on a long-term, 25-year contract for $6,000,000 per year, with no escalation clauses. All neces- sary construction is paid for by the neighboring utility. Find the equivalent annual cost of alternative A, and compare with alternative B.
Expert Answer:
Answer rating: 100% (QA)
Given Interest Rate 12 Time Period 25 Alternative A Cost of N... View the full answer
Related Book For
Posted Date:
Students also viewed these physics questions
-
Solve the following macroeconomic model wherein; Y = C + I + G + NX is the equilibrium condition in macroeconomic model C = 1500 + 0.75Y consumption function ( C = C0+cYd), where c is MPC I = 1250...
-
Solve Prob. 4.110 assuming that the small block C is moved and placed under edge DE at a point 0.75 ft from corner E. Problem 4.110: An opening in a floor is covered by a 4.5 Ã 6-ft sheet of...
-
Solve Prob. 4.116 assuming that the given 880-N load is replaced with two 440-N loads applied at A and B. Problem 4.116: A 2.4-m-long boom is held by a ball-and-socket joint at C and by two cables AD...
-
What is the payback period? Name and discuss three possible reasons that the payback period is used to help make capital investment decisions.
-
1. Evaluate whether you think Zappos is a responsive organization. How do you expect its recent downsizing to affect its responsiveness? 2. How does human resource management reinforce Zappos core...
-
The length of Lake Ontario is approximately 311 km, that is311,000 meters, and has an average depth of 86 m. What is thenatural period of oscillation of the lake, and would one expect thedevelopment...
-
Juniper Networks is an American multinational corporation headquartered in Sunnyvale, California that develops and markets networking products. Its products include routers, switches, network...
-
The following separate income statements are for Burks Company and its 80 percentowned subsidiary, Foreman Company: Additional Information Amortization expense resulting from Foremans excess...
-
A wood frame structure as shown to the right. The framingconsists of 2x6 studs, a single 2x6 bottom plate, two 2x6 topplates and a 2x10 joist. The studs are spaced at 16 in. on centerand sheathed...
-
For the network of Fig. 7.90, determine: a. VG. b. IDQ and VGSQ c. VD and VS d. V o 20 V 2.2 k 910 k DSS GS. 0 110 k 1.1 k
-
What is referred to by the term "common tonality practice"? What periods of history does it cover?
-
What are the advantages and disadvantages of comprehensive insurance?
-
When does title pass in the case of specific goods that are in a deliverable state?
-
Distinguish between a security lease and a finance lease.
-
What is meant by an insurable interest?
-
Give an example of (a) a non-contractual bailment and (b) an involuntary bailment.
-
Two plastic balls, each of radius 1 6 . 0 cm , are placed so that there is a 2 5 . 6 cm space between them. The charge on one ball is + 4 . 3 0 nC and the charge on the other is - 2 . 9 0 nC . What...
-
Consider an envelope detector that is used to detect the message sent in the AM system shown in the examples. The envelope detector as a system is composed of two cascaded systems: one which computes...
-
Let ¤ t ¤ 1 ¤ t ¤ 1, and zero otherwise, be the input to a 2 bit analog-to-digital converter. (a) For a sampling period T s = 0.025 sec. determine and plot using MATLAB...
-
Consider the signal x(t) = (t + 1) + (t 1). (a) Find its Fourier transform X(). Determine if x(t) is band-limited or not. If band-limited, give its maximum frequency. (b) Filtering x(t) with a...
-
a. Nonlinearity in mass b. Nonlinearity in damping c. Linear equation d. Nonlinearity in spring \(\ddot{x}+f \frac{\dot{x}}{|\dot{x}|}+\omega_{n}^{2} x=0\)
-
a. Nonlinearity in mass b. Nonlinearity in damping c. Linear equation d. Nonlinearity in spring \(\ddot{x}+\omega_{0}^{2}\left(x-\frac{x^{3}}{6} ight)=0\)
-
Prove that, for the system considered in Section 13.5.1, the minimum value of \(\omega^{2}\) for which the amplitude of subharmonic oscillations \(A\) will have a real value is given by...
Study smarter with the SolutionInn App