The town of Dry Gulch needs more water from Pine Creek. The town engineer has selected two plans for comparison: a gravity plan (divert water at a point 10 miles up Pine Creek and pipe it by gravity to the town) and a pumping plan (divert water at a point closer to town). The pumping plant would be built in two stages, with half-capacity installed initially and the other half installed 10 years later. (a) Use an annual cash flow analysis to find which plan is more economical. The analysis will assume a 40-year life, 10% interest, and no salvage value. Initial investment Investment in 10th year Operation and maintenance Power cost Average first 10 years Average next 30 years Gravity Pumping $2,800,000 $1,400,000 None 200,000 10,000/yr 25,000/yr None None 50,000/yr 100,000/yr

Elements Of Electromagnetics
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ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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The town of Dry Gulch needs more water from Pine Creek. The town engineer has selected two plans for comparison: a gravity plan
(divert water at a point 10 miles up Pine Creek and pipe it by gravity to the town) and a pumping plan (divert water at a point closer
to town). The pumping plant would be built in two stages, with half-capacity installed initially and the other half installed 10 years
later.
(a) Use an annual cash flow analysis to find which plan is more economical. The analysis will assume a 40-year life, 10% interest,
and no salvage value.
Initial investment
Investment in 10th year
Operation and maintenance
Power cost
Average first 10 years
Average next 30 years
Gravity Pumping
$2,800,000 $1,400,000
None
200,000
10,000/yr 25,000/yr
None
None
50,000/yr
100,000/yr
Transcribed Image Text:The town of Dry Gulch needs more water from Pine Creek. The town engineer has selected two plans for comparison: a gravity plan (divert water at a point 10 miles up Pine Creek and pipe it by gravity to the town) and a pumping plan (divert water at a point closer to town). The pumping plant would be built in two stages, with half-capacity installed initially and the other half installed 10 years later. (a) Use an annual cash flow analysis to find which plan is more economical. The analysis will assume a 40-year life, 10% interest, and no salvage value. Initial investment Investment in 10th year Operation and maintenance Power cost Average first 10 years Average next 30 years Gravity Pumping $2,800,000 $1,400,000 None 200,000 10,000/yr 25,000/yr None None 50,000/yr 100,000/yr
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