ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for
automobiles and trucks. If lined ponds are used to grow the algae, the construction cost is $10 million and the M&O cost is estimated
at $2.1 million per year. Alternatively, if long plastic tubes are used for growing the algae, the initial cost will be higher at $21 million, but
less contamination will render the M&O cost lower at $0.3 million per year. At an interest rate of 15% per year and a 5-year project
period, which system is better-ponds or tubes? Use a present worth analysis.
million and that of plastic tubes is $
The present worth of lined ponds is $
(Click to select) are used to grow algae.
million.
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Transcribed Image Text:Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for automobiles and trucks. If lined ponds are used to grow the algae, the construction cost is $10 million and the M&O cost is estimated at $2.1 million per year. Alternatively, if long plastic tubes are used for growing the algae, the initial cost will be higher at $21 million, but less contamination will render the M&O cost lower at $0.3 million per year. At an interest rate of 15% per year and a 5-year project period, which system is better-ponds or tubes? Use a present worth analysis. million and that of plastic tubes is $ The present worth of lined ponds is $ (Click to select) are used to grow algae. million.
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