Hello, I'm confused on part 'C' on how to graph the answer I received in part...

70.2K

Verified Solution

Question

Economics

Hello, I'm confused on part 'C' on how to graph the answer Ireceived in part 'B'

B. A steam boiler is required as part of the design of a newplant. The types of fuel that can be used to ignite the boiler arenatural gas, fuel oil, and coal. The cost of installation includingall required controls is $40,000 for natural gas, $50,000 for fueloil, and $120,000 for coal. In addition, the annual cost of fueloil is $8,000 less than the annual cost of natural gas and $12,000more than the annual cost of coal. The boiler is to be utilized for20 years and interest rate is 8%. Using the most suitable approach,determine the best alternative. Is there any other considerationfor the obtained result?

Present Worth of Costs:

           Natural Gas:

                      PWC: 40,000 + 8,000 (P/A, 8%, 20) + PWC(OIL)

                       PWC: 40,000 + 8,000 * 9.8181 + PWC(OIL)

                       PWC: 78,544.80 + 40,000 + PWC(OIL)

                       PWC: 118,544.80 + PWC(OIL)

           Fuel Oil:

                       PWC = 50,000 + PWC(OIL)

           

           Coal:

                       PWC = 120,000 – 12,000(P/A, 8%,20) + PWC(OIL)

                       PWC = 120,000 – 12,000 * 9.8181 + PWC(OIL)

                       PWC = 120,000 – 117,817.20 + PWC(OIL)

                       PWC = $2,182.80

The best alternative to ignite the boiler is coal. There are notother issues to be considered to obtain results.

C. Using Excel software or any other software package, solve theproblem of Part B. Include all required commandstatements/programming as part of your solution.

Answer & Explanation Solved by verified expert
4.4 Ratings (755 Votes)
initial cost for fuel oil 40000initial cost for natural gas 50000initial cost for coal 120000boiler is    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students