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Cogenesis Corporation is replacing their current steam plant with a 6-megawatt cogeneration plant that will produce both steam and electric power for their operations.

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Cogenesis Corporation is replacing their current steam plant with a 6-megawatt cogeneration plant that will produce both steam and electric power for their operations. What is the impact of a 5% and 10% increase and decrease in each of the parameters of the problem? What is the present worth of the incremental investment in the cogeneration plant? - Note that plat life is 16 years -10% -5% Base case +5% +10% Initial Investment ?? ?? $3,000,000 $3,150,000 ?? Annual Chemical ?? ?? $65,000 $68,250 ?? operation cost Overhaul in year 10 ?? ?? $17,000 $17,850 ?? Turbo-generator ?? ?? $35,000 $36,750 ?? overhauls in year each 4 year (i.e. 4,8,12 &16) Annual wood cost ?? ?? $375,000 $393,750 ?? Annual Savings ?? ?? $1,000,000 $1,050,000 ?? MARR 0.108 0.114 0.12 0.126 0.132 PW ?? ?? ?? ?? ?? net present value Func NPV FW ?? ?? ?? ?? ?? AW ?? ?? ?? ??

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1 Base Case Calculation Initial Investment 3000000 Annual Chemical Operation Cost 65000 Overhaul in Year 10 17000 Turbogenerator Overhauls in Years 4 8 12 16 35000 each Annual Wood Cost 375000 Annual ... blur-text-image

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