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 $10 million and the M&O cost is estimated at $2.1 million per year. Alternatively, if long plastic tubes are used for growing the algae, the initial cost will be higher at $21 million, but less contamination will render the M&O cost lower at $0.3 million per year. At an interest rate of 15% per year and a 5-year project period, which system is better-ponds or tubes? Use a present worth analysis. The present worth of lined ponds is $ million and that of plastic tubes is $ (Click to select) are used to grow algae. million.

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 $10 million and the M&O cost is estimated at $2.1 million per year. Alternatively, if long plastic tubes are used for growing the algae, the initial cost will be higher at $21 million, but less contamination will render the M&O cost lower at $0.3 million per year. At an interest rate of 15% per year and a 5-year project period, which system is better-ponds or tubes? Use a present worth analysis. The present worth of lined ponds is $ million and that of plastic tubes is $ (Click to select) are used to grow algae. million.

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Description: Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel forautomobiles and trucks. If lined ponds are used to grow the algae, the construction cost is $10 million and the M&O co

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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