3. You have been asked to evaluate the economic implications of various methods forcooling condenser effluents from a 200-MW steam electric plant. In this regard, coolingponds and once through cooling systems have been eliminated from considerationbecause of their adverse ecological effects. It has been decided to use cooling towers todissipate waste heat to the atmosphere. There are two basic types of cooling towers: wetand dry. Furthermore, heat may be removed from condenser water by (1) forcing(mechanically) air through the tower or (2) allowing heat transfer to occur by makingof natural draft. Consequently, there are four basic cooling tower designs that oconsidered. Assuming that the cost of capital to the utility company is 12% per yjob is to recommend the best alternative (i.e., the least expensive during the sein view of the data in the table below. Further, assume that each alternative is dsatisfactorily removing waste heat from the condensers of a 200-MW power planoneconomic factors can you identify that might also play a role in the decision-manprocess?79Alternative Types of Cooling Towers for a 200-Megawatt Fossil-Fired Power PlantOperating at Full Capacity aAlternativeWet TowerWet TowerDry TowerMech. DraftDry TowerNatural DraftMech. Draft$3 million40 200-hpinduced-draft fans20 150-hp pumps$0.15 millionNatural DraftInitial costPower for I.D.$8.7 million$5.1 million$9.0 millionNone20 200-hp I.D.fansNonefansPower for pumpsMechanicalmaintenance/yearService life20 150-hp pumps 40 100-hp pumps 40 100-hp pumps$0.17 million$0.10 million$0.12 million30 years30 years30 years30 yearsMarket valuea 100 hp = 74.6 kw; cost of power to plant is 2.2 cents per kWh or kilowatt-hour; induced-draft fans and pumps operatearound the clock for 365 days/year (continuously). Assume that electric motors for pumps and fans are 90% efficient.

The decision-making of selecting an alternative among other alternatives can be done by comparing…

3. You have been asked to evaluate the economic implications of various methods for cooling condenser effluents from a 200-MW steam electric plant. In this regard, cooling ponds and once through cooling systems have been eliminated from consideration because of their adverse ecological effects. It has been decided to use cooling towers to dissipate waste heat to the atmosphere. There are two basic types of cooling towers: wet and dry. Furthermore, heat may be removed from condenser water by (1) forcing (mechanically) air through the tower or (2) allowing heat transfer to occur by making of natural draft. Consequently, there are four basic cooling tower designs that o considered. Assuming that the cost of capital to the utility company is 12% per y job is to recommend the best alternative (i.e., the least expensive during the se in view of the data in the table below. Further, assume that each alternative is satisfactorily removing waste heat from the condensers of a 200-MW power pla noneconomic factors can you identify that might also play a role in the decision-man process?

3. You have been asked to evaluate the economic implications of various methods for cooling condenser effluents from a 200-MW steam electric plant. In this regard, cooling ponds and once through cooling systems have been eliminated from consideration because of their adverse ecological effects. It has been decided to use cooling towers to dissipate waste heat to the atmosphere. There are two basic types of cooling towers: wet and dry. Furthermore, heat may be removed from condenser water by (1) forcing (mechanically) air through the tower or (2) allowing heat transfer to occur by making of natural draft. Consequently, there are four basic cooling tower designs that o considered. Assuming that the cost of capital to the utility company is 12% per y job is to recommend the best alternative (i.e., the least expensive during the se in view of the data in the table below. Further, assume that each alternative is satisfactorily removing waste heat from the condensers of a 200-MW power pla noneconomic factors can you identify that might also play a role in the decision-man process?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2.4CE

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