Question
Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for automobiles and trucks.
Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for automobiles and trucks. If lined ponds are used to grow the algae, the construction cost is $9 million and the M&O cost is estimated at $1.8 million per year. Alternatively, if long plastic tubes are used for growing the algae, the initial cost will be higher at $17 million, but less contamination will render the M&O cost lower at $0.3 million per year. At an interest rate of 13% per year and a 5-year project period, which system is betterponds or tubes? Use a present worth analysis. The present worth of lined ponds is $ million and that of plastic tubes is $ million.
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