Question

In: Economics

Hello, I'm confused on part 'C' on how to graph the answer I received in part...

Hello, I'm confused on part 'C' on how to graph the answer I received in part 'B'

B. A steam boiler is required as part of the design of a new plant. The types of fuel that can be used to ignite the boiler are natural gas, fuel oil, and coal. The cost of installation including all required controls is $40,000 for natural gas, $50,000 for fuel oil, and $120,000 for coal. In addition, the annual cost of fuel oil is $8,000 less than the annual cost of natural gas and $12,000 more than the annual cost of coal. The boiler is to be utilized for 20 years and interest rate is 8%. Using the most suitable approach, determine the best alternative. Is there any other consideration for the obtained result?

Present Worth of Costs:

            Natural Gas:

                        PWC: 40,000 + 8,000 (P/A, 8%, 20) + PWC(OIL)

                        PWC: 40,000 + 8,000 * 9.8181 + PWC(OIL)

                        PWC: 78,544.80 + 40,000 + PWC(OIL)

                        PWC: 118,544.80 + PWC(OIL)

            Fuel Oil:

                        PWC = 50,000 + PWC(OIL)

           

            Coal:

                        PWC = 120,000 – 12,000(P/A, 8%,20) + PWC(OIL)

                        PWC = 120,000 – 12,000 * 9.8181 + PWC(OIL)

                        PWC = 120,000 – 117,817.20 + PWC(OIL)

                        PWC = $2,182.80

The best alternative to ignite the boiler is coal. There are not other issues to be considered to obtain results.

C. Using Excel software or any other software package, solve the problem of Part B. Include all required command statements/programming as part of your solution.

Solutions

Expert Solution

initial cost for fuel oil= $ 40,000

initial cost for natural gas =$ 50,000

initial cost for coal =$ 120,000

boiler is to be utilized for 20 years and interest rate is 8%.

, the annual cost of fuel oil is $8,000 less than the annual cost of natural gas and $12,000 more than the annual cost of coal

Best fuel alternative for use in boiler would be one with least EUAC ( equivalent uniform annual cost)

It is quite evident coal has the lowest EUAC

formula used

           5,000            9,076          18,095            5,228
         10,000          14,076          23,095          10,228
         15,000          19,076          28,095          15,228
         20,000          24,076          33,095          20,228
         25,000          29,076          38,095          25,228


Related Solutions

I'm very confused on how to complete this code. There are 5 total classes. I have...
I'm very confused on how to complete this code. There are 5 total classes. I have some written but it isn't quite working and the Band class especially is confusing me. I posted the entire thing since the band and manager class refer to the other classes' constructors and thought it would be helpful to post those as well. Person class is a base class: Private variables String firstname, String lastname, int age Constructor has the parameters String firstname, String...
Hello, I am a bit confused as how line integrals can exist in 2D. For 2D,...
Hello, I am a bit confused as how line integrals can exist in 2D. For 2D, we are dealing with two variables: x and y. For 3D, we are dealing with three variables: x,y and z=f(x,y), such that f(x,y) = x+y. Since line integrals use the x and y components as inputs and f(x,y) = z as the output, should not line integrals exist in 3D always?
ANSYS Fluent I'm a beginner in the field. Now I am confused about some settings. I'm...
ANSYS Fluent I'm a beginner in the field. Now I am confused about some settings. I'm doing a analysis job to compare the difference between a car with rear wing and the other one without rear wing. First, I don't sure which car (the one with rear wing or the one without rear wing)should have a bigger Cd value, somebody says that cars with rear wings will increase drag as well as downforce, is that right ? Second, I always...
Trying to make sure I'm answering these questions correctly. I'm confused on question d. I can...
Trying to make sure I'm answering these questions correctly. I'm confused on question d. I can explain why in terms of concentration gradient and the fact it's in a hypotonice solution which would cause water to go into the blood vessel, but don't know how to answer it in terms of hydrostatic pressure. 6. Imagine blood in a vessel that has an osmolarity of 300 mEq (a measure of the concentration of particles). Now, imagine that the IF around the...
Using dev c++ I'm having trouble with classes. I think the part that I am not...
Using dev c++ I'm having trouble with classes. I think the part that I am not understanding is sending data between files and also using bool data. I've been working on this program for a long time with many errors but now I've thrown in my hat to ask for outside help. Here is the homework that has given me so many issues: The [REDACTED] Phone Store needs a program to compute phone charges for some phones sold in the...
Hello, I am studying and I am a bit confused about registers. There are segments registers,...
Hello, I am studying and I am a bit confused about registers. There are segments registers, data registers, pointer registers, index registers. But I do not really understand where these are found. Are they found in 8086 architecture? For instance if I ask what type of registers are found in 8086 architecture what will be the answer? All of these or only segment registers?
I'm confused on how bonding works with metalloids. Will it be an ionic or covalent bond?...
I'm confused on how bonding works with metalloids. Will it be an ionic or covalent bond? For example P and As
Hello, I am confused on the difference between PV and PV (annuity), FV and FV(annuity). I...
Hello, I am confused on the difference between PV and PV (annuity), FV and FV(annuity). I do not know when to use one formula over the other. Is there a way you can simplify when to use each formula? The key differences? Key phrases or words I should associate them with? An easy way to remember how each formula is used? I am confused on TVM equations. For example) #1. You buy a property for $100,000 and you are offered...
Could you explain this to me? I'm really confused. I need to learn it step by...
Could you explain this to me? I'm really confused. I need to learn it step by step. Thank you so much! So this is the sample set the s ample mean is 100 and the SD is 10 and the s ample size is 500. Can you construct the 95 % confidence interval>
I had a question about ethnicity. I'm writing a paper and am a bit confused on...
I had a question about ethnicity. I'm writing a paper and am a bit confused on the word ethnicity. For example if a person is half asian and half white with some european ancestry what would you consider their ethnicity to be? And how does that differ from race?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT