Which of the following is NOT a category for capital budgeting decisions? a. Selection decisions b. Screening decisions c. Prefe
1 answer:
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Solution:
Given Information,
Heat input is ( ) = 5.5 ×
Btu/h
Combustion efficiency of the boiler () = 0.7
Combustion efficiency after turn up () = 0.8
Operation Hour (t) = 5200h
Unit cost (c) =
Calculate heat output from the boiler =
x
= 5.5 x x 0.7
= 3.85 x Btu/h
Calculate the heat input to the boiler after the tune-up
=
/
= 3.85 x / 0.8
= 4.8125 x Btu/h
Calculate the saved energy after the tune-up
=
-
= 5.5 x - 4.8125 x
Btu/h
= 0.6875 x Btu/h
Calculate the annual energy saving ( )
=
x t
= ( 0.6875 x Btu/h ) ( 5200 hr/yr)
= 3575 x Btu/h
Calculate the annual cost saving
Annual cost saving = x Unit cost
= 3575 x Btu/h x
= 82225