Pearson eText for Engineering Economy -- Instant Access (Pearson+)
Pearson eText for Engineering Economy -- Instant Access (Pearson+)
17th Edition
ISBN: 9780137533138
Author: William Sullivan, Elin Wicks
Publisher: PEARSON+
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Chapter 8, Problem 41P
To determine

Calculate the present worth.

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A company has a project for building and operating a new electricity generation station. The operation costs of generators is given by: Co = MHN3 Where M is constant, H is the operation hours, and N is the number of generators. It is known that, when the company uses 12 generators, the operation cost is found to be $ 250 per hour. Other overhead costs including electricity transformation and maintenance are estimated to be $40000 for each hour per generator. 1- What is the optimum number of generators to be used in order to 2- How to ensure your answer to part (1) is correct. imize costs?
8. The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for materials. The fixed charges in operating the plant are P100,000 per month. The variable cost is P1.00 per set. The radio set can be sold for P75.00 each. Determine how many sets must be produced per month to break even.
A coal-fired power plant can produce electricity at a variable cost of $0.04 per kilowatt-hour when running at its full capacity of 30 megawatts per hour, $0.16 per kilowatt-hour when running at 20 megawatts per hour, and $0.24 per kilowatt-hour when running at 10 megawatts per hour. A gas-fired power plant can produce electricity at a variable cost of $0.12 per kilowatt-hour at any capacity from 1 megawatt per hour to its full capacity of 5 megawatts per hour. The cost of constructing a coal-fired plant is $60 million, but it costs only $12 million to build a gas-fired plant. Instructions: In part b, enter your answer as a whole number. In parts c and d, round your answers to 2 decimal places. a. Consider a city that has a peak afternoon demand of 80 megawatts of electricity. If it wants all plants to operate at full capacity, what combination of coal-fired plants and gas-fired plants would minimize construction costs? 2 coal-fired plants and 4 gas-fired plants 16 gas-fired plants 1…
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