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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 ​$75 comma 00075,000. 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 99​% per year.

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zubam2002

Answer:

Step-by-step explanation:

The Biomassfueled power plant installed, using ESP, records as follow, the year, operational and maintenance expenses (O & M expenses) and market values (MVs)

Year                        O & M expenses                             MVs

1st                              $25,000                                         $65,000

2nd                           $25,000                                         $58,000

3rd                            $32,000                                         $48,000

4th                            $39,000                                         $33,000

5th                            $46,000                                         $22,580

2)  Well, the best time to replace the ESP, is the fourth year, because of the sharp fall in market value between the former year and latter year.

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