Explain which is the most economical installation

Assignment Help Econometrics

Reference no: EM13237058

A steam boiler is needed as part of the design of a new plant. The boiler can be fired by natural gas, fuel, or coal. A decision must be made on which fuel to use. An analysis of costs shows that the installed cost, with all controls, would be at least for natural gas at 30000, for fuel oil it would be 55000, and for coal it would be 180000. If natural gas is used rather than fuel oil, the annual fuel cost will increase by 7500. If coal is used rather than fuel oil, the annual fuel cost will be 15000 per year less. Assuming 8% interest and a 20-year analysis period, and no salvage value, which is the most economical installation?

Reference no: EM13237058

Questions Cloud

How does system differ from a system based on interest : Consequently, an example of an Islamic-sound banking practice is a system in which depositors deposit money to participate in profit-sharing and the banks provide funds to borrowers on the same principle with a mark-up as payment for their financi..

What are the annual ordering costs : William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics.

Find the electric field at the proton : A proton is at the origin and an electon is at the point x = 0.41 nm, y = 0.36 nm. Find the electric FIELD at the proton,

What is the volume of units required per month to break even : A manufacturer is considering adding a new facility to keep up with demand. The location being considered will have fixed cost of $15000.00 per month and variable costs of $15.00 per unit. The selling price will be $25.00 per unit. Show all wor..

Explain which is the most economical installation : A decision must be made on which fuel to use. An analysis of costs shows that the installed cost, with all controls, would be at least for natural gas at 30000, for fuel oil it would be 55000, and for coal it would be 180000.

How can they claim the right to influence law : If businesses claim to have no extra-legal obligations, how can they claim the right to influence law and regulation?

What is the orbital period of the planet tplanet : A planet of mass m = 7.05 × 1024 kg is orbiting in a circular path a star of mass M = 4.95 × 1029 kg. The radius of the orbit is R = 8.35 × 107 km

What is the net electric field at x=+4.0cm : Two point charges lie on the x axis. A charge of 6.2uC is at the origin, and a charge of -9.4uC is at x=10.0cm. What is the net electric field at x=+4.0cm

Find the z-component of the electric field : The electric potential is given by (50 V/m7)(xz6 + x3y4) in the region of space that includes the point (x,y,z) = (-2,7,-3) m

User Account

All Pages