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2. A steam generator is needed in the design of a new power plant. This generator can be fired by three different fuels, A, B

2. A steam generator is needed in the design of a new power plant. This generator can be fired by three different fuels, A, B or C, with the following cost shown in Table 6-2. If the study period is 20 years and MARR is 8% per year, which type of the fuel is most economical?

Table 6-2


Alternative A
Alternative B
Alternative C
Installed investment
$30,000
$55,000
$180,000
Annual fuel expense
$97,500
$20,000
$5,000
Useful life (years)
20
20
20

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