Answered: A food processing plant consumed…

Introductory Circuit Analysis (13th Edition)

13th Edition

ISBN:9780133923605

Author:Robert L. Boylestad

Publisher:Robert L. Boylestad

Chapter1: Introduction

Section: Chapter Questions

Problem 1P: Visit your local library (at school or home) and describe the extent to which it provides literature...

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A food processing plant consumed 450,000 kW of electric energy annually and pays an average of P2.00 per kWh. A study is being made to generate its own power to supply the plant the energy required, and that the power plant installed would cost P2,000,000. Annual operation and maintenance, P800,000. Other expenses P100,000 per year. Life of power plant is 15 years; salvage value at the end of life is P200,000; annual taxes and insurances, 4% of first cost; and rate of interest is 14%. What is the annual worth? Is the power plant justifiable?

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