Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows: Cost In thousands of $ Useful Life MARR (%) Investment cost $13,000 15 years 12% Annual operating expenses $200 Overhaul cost - EOY 5 $200 Overhaul cost - EOY 10 $550 Market Value - EOY 15 $1,000 Answers are also "in thousands of dollars". i 0.12 = 0.1529 -15 Capital Recovery Factor → CRF = = 1 − (1 + i)-n 1 − (1 + 0.12)−1 Annual Expense → AE = Annual OPEX * CRF = $30.58 200 PWoverhaul,yr5 (1+0.12)5 PWoverhaul,yr5 113.48 = PWoverhaul,10 PWoverhaul.10 PW 550 (1+0.12)10 177.01 1000 marketvalue (1+0.12)15 PWmarketvalue 231.63 Present worth's. PWTotal = -13000+30.58 + 113.48 + 177.01 + 231.63 = −12447.3 PWtot =-12447.3 Project is not economically justified.
Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows: Cost In thousands of $ Useful Life MARR (%) Investment cost $13,000 15 years 12% Annual operating expenses $200 Overhaul cost - EOY 5 $200 Overhaul cost - EOY 10 $550 Market Value - EOY 15 $1,000 Answers are also "in thousands of dollars". i 0.12 = 0.1529 -15 Capital Recovery Factor → CRF = = 1 − (1 + i)-n 1 − (1 + 0.12)−1 Annual Expense → AE = Annual OPEX * CRF = $30.58 200 PWoverhaul,yr5 (1+0.12)5 PWoverhaul,yr5 113.48 = PWoverhaul,10 PWoverhaul.10 PW 550 (1+0.12)10 177.01 1000 marketvalue (1+0.12)15 PWmarketvalue 231.63 Present worth's. PWTotal = -13000+30.58 + 113.48 + 177.01 + 231.63 = −12447.3 PWtot =-12447.3 Project is not economically justified.
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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Transcribed Image Text:Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year.
Pertinent cost data are as follows:
Cost
In thousands of $
Useful Life
MARR (%)
Investment cost
$13,000
15 years
12%
Annual operating expenses
$200
Overhaul cost - EOY 5
$200
Overhaul cost - EOY 10
$550
Market Value - EOY 15
$1,000
Answers are also "in thousands of dollars".
i
0.12
= 0.1529
-15
Capital Recovery Factor → CRF
=
=
1 − (1 + i)-n 1 − (1 + 0.12)−1
Annual Expense → AE = Annual OPEX * CRF = $30.58
200
PWoverhaul,yr5 (1+0.12)5
PWoverhaul,yr5 113.48
=
PWoverhaul,10
PWoverhaul.10
PW
550
(1+0.12)10
177.01
1000
marketvalue (1+0.12)15
PWmarketvalue 231.63
Present worth's.
PWTotal
= -13000+30.58 + 113.48 + 177.01 + 231.63 = −12447.3
PWtot =-12447.3
Project is not economically justified.
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