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In assessing the power source for a water pump needed at a distant location over a 14-year period, two options are under consideration. The pump can either be operated by a solar panel, requiring installation of solar infrastructure, or run by a diesel engine. To identify the more economical choice, perform an annual cash flow analysis (EUAC) with a 8% interest rate. Determine the optimal power source for the pump in this situation. Solar Diesel Engine First cost $2500 S8500 Annual operating cost 1000 400 Annual maintenance 300 100 Salvage value 500 600 Life, in years 7 14

In assessing the power source for a water pump needed at a distant location over a 14-year period, two options are under consideration. The pump can either be operated by a solar panel, requiring installation of solar infrastructure, or run by a diesel engine. To identify the more economical choice, perform an annual cash flow analysis (EUAC) with a 8% interest rate. Determine the optimal power source for the pump in this situation. Solar Diesel Engine First cost $2500 S8500 Annual operating cost 1000 400 Annual maintenance 300 100 Salvage value 500 600 Life, in years 7 14

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In assessing the power source for a water pump needed at a distant location over a 14-year period, two options are under consideration. The pump can either be operated by a solar panel, requiring installation of solar infrastructure, or run by a diesel engine. To identify the more economical choice, perform an annual cash flow analysis (EUAC) with a 8% interest rate. Determine the optimal power source for the pump in this situation. Solar Diesel Engine First cost $2500 S8500 Annual operating cost 1000 400 Annual maintenance 300 100 Salvage value 500 600 Life, in years 7 14
Transcribed Image Text:In assessing the power source for a water pump needed at a distant location over a 14-year period, two options are under consideration. The pump can either be operated by a solar panel, requiring installation of solar infrastructure, or run by a diesel engine. To identify the more economical choice, perform an annual cash flow analysis (EUAC) with a 8% interest rate. Determine the optimal power source for the pump in this situation. Solar Diesel Engine First cost $2500 S8500 Annual operating cost 1000 400 Annual maintenance 300 100 Salvage value 500 600 Life, in years 7 14
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