If the solution still is optimal with the new constraint added or not. Linear programming: It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

Question

Combined-cycle power plants use two combustion turbines to produce electricity. Heat from the first turbine’s exhaust is captured to heat waterand produce steam sent to a second steam turbine that generates additional electricity. A 968-megawatt combined-cycle gas fired plant can be purchased for $450 million, has no salvage value, and produces a net cash flow(revenues less expenses) of $50 million per year over its expected 30-year life. Solve, a. If the hurdle rate (MARR) is 12% per year, how profitable an investment is this power plant? b. What is the simple payback period for the plant? Is this investment acceptable?

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Question

Chapter 3, Problem 46P

Summary Introduction

To explain: If the solution still is optimal with the new constraint added or not.

Linear programming:

It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

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