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BlueSun Inc. is planning installation of another energy source. Their time horizon and energy usage are uncertain but they expect to be in business for
BlueSun Inc. is planning installation of another energy source. Their time horizon and energy usage are uncertain but they expect to be in business for quite a while. BlueSun can either modify its present system, based on fossil fuels, and stay with that, or else try one of two systems based on renewable resources: solar or wind. The present system, fossil fuels has a cost of only $17,000. A solar-powered system would have an installation cost of $21,000 and a wind-powered system would cost $38,000 up front. However, each 1000KW-hrs. of energy used by BlueSun will cost an additional $180 for the fossil fuel system, $156 for the solar-powered system, and $97 for the wind-powered system. Based on comparing all three energy sources answer the following: a. Which energy source is preferable in the long run, and why? [ Select ] b. Up to how much energy usage (in units of 1000 KW-hrs.) would BlueSun's needs be most cheaply met using fossil fuels? 166.67 units c. For what range of energy usage, if any, is the solar-powered system best? up to 288.14 d. If the amount of units were 180, which source of energy should be chosen and what would
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