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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A steam boiler is needed as part of the design of a new plant. The boiler can be fired by natural gas,
fuel oil, or coal. A decision must be made on which fuel to use. An analysis of the costs shows that the
installed cost, with all controls, would be least for natural gas at $30,000; for fuel oil it would be
$55,000; and for coal it would be $180,000. If natural gas is used rather than fuel oil, the annual fuel
cost will increase by $7500. If coal is used rather than fuel oil, the annual fuel cost will be $15,000 per
year less. Assuming 8% interest, a 20-year analysis period and no salvage value, use a present worth
analysis to determine the most economical installation.
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