You have been asked to evaluate the economic implications of various methods for cooling condenser effluents from a 200-MW steamelectric plant. 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 use of natural draft. Consequently, there are four basic cooling tower designs that could be considered. Assuming that the cost of capital to the utility company is 12% per year, your job is to recommend the best alternative (i.e., the least expensive during the service life). Further, assume that each alternative is capable of satisfactorily removing waste heat from the condensers of a 200-MW power plant. What noneconomic factors can you identify that might also play a role in the decision-making process? Click the icon to view the alternatives description. Data Table icon to view the interest and annuity table for discrete compounding when /= 12% per year. (Round to the nearest dollar.) The AW of Wet Tower, Mechanical Draft is $ The AW of Wet Tower, Natural Draft is $ (Round to the nearest dollar.) The AW of Dry Tower, Mechanical Draft is $. (Round to the nearest dollar.) The AW of Dry Tower, Natural Draft is $. (Round to the nearest dollar.)
You have been asked to evaluate the economic implications of various methods for cooling condenser effluents from a 200-MW steamelectric plant. 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 use of natural draft. Consequently, there are four basic cooling tower designs that could be considered. Assuming that the cost of capital to the utility company is 12% per year, your job is to recommend the best alternative (i.e., the least expensive during the service life). Further, assume that each alternative is capable of satisfactorily removing waste heat from the condensers of a 200-MW power plant. What noneconomic factors can you identify that might also play a role in the decision-making process? Click the icon to view the alternatives description. Data Table icon to view the interest and annuity table for discrete compounding when /= 12% per year. (Round to the nearest dollar.) The AW of Wet Tower, Mechanical Draft is $ The AW of Wet Tower, Natural Draft is $ (Round to the nearest dollar.) The AW of Dry Tower, Mechanical Draft is $. (Round to the nearest dollar.) The AW of Dry Tower, Natural Draft is $. (Round to the nearest dollar.)
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 10E
Related questions
Question
Transcribed Image Text:You have been asked to evaluate the economic implications of various methods for cooling condenser effluents from
a 200-MW steamelectric plant. 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 use of natural draft. Consequently, there are four basic cooling tower designs that could be considered.
Assuming that the cost of capital to the utility company is 12% per year, your job is to recommend the best
alternative (i.e., the least expensive during the service life). Further, assume that each alternative is capable of
satisfactorily removing waste heat from the condensers of a 200-MW power plant. What noneconomic factors can you
identify that might also play a role in the decision-making process?
Click the icon to view the alternatives description.
Data Table icon to view the interest and annuity table for discrete compounding when i = 12% per year.
The AW of Wet Tower, Mechanical Draft is $
The AW of Wet Tower, Natural Draft is $
The AW of Dry Tower, Mechanical Draft is $
The AW of Dry Tower, Natural Draft is $
(Round to the nearest dollar.)
(Round to the nearest dollar.)
(Round to the nearest dollar.)
(Round to the nearest dollar.)
Transcribed Image Text:Initial cost
Power for I.D. fans
Power for pumps
Wet Tower
Mech. Draft
Mechanical maintenance/year
Service life
Market value
$2.9 million
40 200-hp I.D. fans
20 150-hp pumps
$0.10 million
30 years
0
Alternative
Wet Tower
Natural Draft
$9.1 million
None
20 150-hp pumps
$0.12 million
30 years
0
Dry Tower
Mech. Draft
$5.0 million
20 200-hp I.D. fans
40 100-hp pumps
$0.18 million
30 years
0
Dry Tower
Natural Draft
$9.0 million
None
40 100-hp pumps
$0.11 million
30 years
0
100 hp = 74.6 kW; cost of power to plant is 2.2 cents per kWh or kilowatt-hour; induced-draft fans and pumps operate
around the clock for 365 days/year (continuously). Assume that electric motors for pumps and fans are 90% efficient.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps with 9 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning