Least-cost abatement curve Solar PV Coal CCS Nuclear Feasible set new build Low-penetration wind Coal CCS retrofit High-penetration wind Iron and steel CCS new build 8.37 billion euros Cost of abatement (billions € = cost per tonne abated x gigatonnes abated) Environmental quality, E (amount abated, GtCO,) 11.2 GTCO, 4.94 GTCO,

Least-cost abatement curve Solar PV Coal CCS Nuclear Feasible set new build Low-penetration wind Coal CCS retrofit High-penetration wind Iron and steel CCS new build 8.37 billion euros Cost of abatement (billions € = cost per tonne abated x gigatonnes abated) Environmental quality, E (amount abated, GtCO,) 11.2 GTCO, 4.94 GTCO,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A business owner is comparing between three alternatives (A, B, and C) for their new project. A. Buy a new equipment with an initial cost of $120,000; annual operating cost of $7000; and salvage value of $5000. B. Buy a new equipment with an initial cost of $105,000; annual operating cost of $10500; and salvage value of $7000. C. Continue using the same equipment they already have with an annual operating cost of $25,000. Life of all alternatives is 12 years. With interest at 8% compounded annually, which alternative should the engineer recommend? Use future worth analysis.
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a b C $40; $40 $40; zero $150,000; $150,000 zero; $40
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