Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 3, Problem 15P

The capacity of a switch grass-fueled ethanol plant is 100,000 gallons per month. Its capital investment is $600,000. Another design is being considered with a capacity of 40,000 gallons per month, and its capital investment is $300,000. Based on capital investment only, what is the cost-capacity factor for this technology? (3.4)

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Nowadays it is very important to reduce one's carbon footprint" (how much carbon we produce in our daily lifestyles). Minimizing the use of fossil fuels and instead resorting to renewable sources of energy (e.g., solar energy) are vital to a "sustainable" lifestyle and a lower carbon footprint. Let's consider solar panels that prewarm the water fed to a conventional home water heater. The solar panels have an installed cost of $2,436, and they reduce the homeowner's energy bill by $30.5 per month. The residual value of the solar panels is negligible at the end of their 8-year life. What is the annual effective IRR of this investment? The annual effective IRR of this investment is%. (Round to two decimal places.) please explain using excel
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