A steam generation system at a biomass fueled 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 $77,000.

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 10?% per year.

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 $77,000. 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 10% per year. Year O&M expense $22,000 $22,000 $27,000 $32,000 $37,000 Market value $60,000 $53,000 $43,000 $28,000 $13,000 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. The best time to replace the ESP is the end of year | |. (Round to the nearest whole number.)Reference - X Discrete Compounding; i = 10% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N F/P P/F F/A P/A A/F A/P 1.1000 0.9091 1.0000 0.9091 1.0000 1.1000 1.2100 0.8264 2.1000 1.7355 0.4762 0.5762 1.3310 0.7513 3.3100 2.4869 0.3021 0.4021 1.4641 0.6830 4.6410 3.1699 0.2155 0.3155 1.6105 0.6209 6.1051 3.7908 0.1638 0.2638 1.7716 0.5645 7.7156 4.3553 0.1296 0.2296 1.9487 0.5132 9.4872 4.8684 0. 1054 0.2054 2.1436 0.4665 11.4359 5.3349 0.0874 0.1874 2.3579 0.4241 13.5795 5.7590 0.0736 0.1736 10 2.5937 0.3855 15.9374 6.1446 0.0627 0.1627 Print Done