Question
Create an excel solution for this problem. Florida Power and Light has committed to building a solar power plant. JoAnne, an IE working for FPL,
Create an excel solution for this problem.
Florida Power and Light has committed to building a solar power plant. JoAnne, an IE working for FPL, has been tasked with evaluating the three current designs. FPL uses an interest rate of 10% an a 20 year horizon. Design 1: A field of "flat" solar panels angled to best catch the sun will yield 2.6MW of power and will cost $87million initially with first-year operating costs of $2million, growing $250,000 annually. It will produce electricity worth $6.9million the first year and will increase by 8% each year thereafter. Design 2: A field of mechanized solar panels rotates from side to side so that they are always positioned parallel to the sun's rays, maximizing the production of electricity. This design will yield 3.1MW of power and will cost $101million initially with first year operating costs of $2.3million, growing $300,000 annually. It will produce electricity worth $8.8 million the first year and will increase by 8% each year. Design 3: This design uses a field of mirrors to focus the suns's rays onto a boiler mounted in a tower. The boiler then produces steam and generates electricity the same way a coal-fired plat operates. This system will yield 3.3MW of power and will cost $91million initially with first year operating costs at $3million, growing $350,000 annually. It will produce electricity worth $9.7 million the first year and will increase by 8% each year. Which option is the most cost economical?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started