Answer Happy

a new power plant is considered for installation in order to save 25% of the total fuel consumption. of the system's price (X) is justified over 10 years of work by the fuel saving and the selling of electricity produced. Assume that the plant is powered by gasoline that costs 1$ per liter. the system's normal consumption of gasoline is 50 liters per hour and the plant works for 70000 hour uniformly distributed over the 10years. Also the overhaul cost of plant is 1000000 every 2 years and it produces 3 megawatt of electricity annually to be sold at 1$ per each kilowatt in year 1 increasing by 0.05$ thereafter. if the system's rate of return is 15% per year. Determine the maximum value of X