A steam generation system at a biomassfueled power plant uses an electrostatic precipitator (ESP) to clean its gaseous effluents. The power plant has consistently made use of the same type of ESP over the past several years. The installed cost of a new ESP has been relatively constant at $75 comma 00075,000. Records of operation and maintenance expenses indicate the following average expenses per year as a function of the age of the ESP. The MVs of the ESP are also reasonably well known as a function of age. Determine the best time to replace the ESP if the MARR is 99 % per year.

Question

Mathematics

Tania Wiley

8 May, 11:07

A steam generation system at a biomassfueled power plant uses an electrostatic precipitator (ESP) to clean its gaseous effluents. The power plant has consistently made use of the same type of ESP over the past several years. The installed cost of a new ESP has been relatively constant at $75 comma 00075,000. Records of operation and maintenance expenses indicate the following average expenses per year as a function of the age of the ESP. The MVs of the ESP are also reasonably well known as a function of age. Determine the best time to replace the ESP if the MARR is 99 % per year.

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Emilia Mayo · Answer 1

Step-by-step explanation:

The Biomassfueled power plant installed, using ESP, records as follow, the year, operational and maintenance expenses (O & M expenses) and market values (MVs)

Year O & M expenses MVs

1st $25,000 $65,000

2nd $25,000 $58,000

3rd $32,000 $48,000

4th $39,000 $33,000

5th $46,000 $22,580

2) Well, the best time to replace the ESP, is the fourth year, because of the sharp fall in market value between the former year and latter year.