Question

As a consulting engineer, your client needs to build an electricity generating plant, and they are unsure of the best choice between the coal, nuclear and hydroelectric plants. You must determine the best option by finding the overall cost per kWh. The plant's rated capacity is to be 600 MW. The capital cost per MW installed is estimated to be R 3.50, R 5.60 and R 7.30 million for the coal, nuclear and hydro-electric plants, respectively. The transmission components to the nearby civilisations are R 8.00 \times 10^{2}, R 10.00 \times 10^{2}, and R 7.00 \times 10^{2} for the coal, nuclear, and hydroelectric plants, respectively. The prevailing interest rate is 10.75%, and the depreciation is expected to be 5%, 9% and 7% for the coal, nuclear and hydroelectric plants, respectively. The anticipated annual load factor is 35%, and the plant will operate for 180 days per annum. Finally, the operating costs per kWh are R 12 \times 10^{-2}, R15.00 \times 10^{-2} and R33.00 \times 10^{-2} for the respective plants. [Coal=R0.565/kWh; Nuclear=R0.981/kWh; Hydro=R1.257/kWh]

          As a consulting engineer, your client needs to build an electricity generating plant, and they are unsure of the best choice between the coal, nuclear and hydroelectric plants. You must determine the best option by finding the overall cost per kWh. The plant's rated capacity is to be 600 MW. The capital cost per MW installed is estimated to be R 3.50, R 5.60 and R 7.30 million for the coal, nuclear and hydro-electric plants, respectively. The transmission components to the nearby civilisations are R 8.00 \times 10^{2}, R 10.00 \times 10^{2}, and R 7.00 \times 10^{2} for the coal, nuclear, and hydroelectric plants, respectively. The prevailing interest rate is 10.75%, and the depreciation is expected to be 5%, 9% and 7% for the coal, nuclear and hydroelectric plants, respectively. The anticipated annual load factor is 35%, and the plant will operate for 180 days per annum. Finally, the operating costs per kWh are R 12 \times 10^{-2}, R15.00 \times 10^{-2} and R33.00 \times 10^{-2} for the respective plants. [Coal=R0.565/kWh; Nuclear=R0.981/kWh; Hydro=R1.257/kWh]

$As a consulting engineer, your client needs to build an electricity generating plant, and they are unsure of the best choice between the coal, nuclear and hydroelectric plants. You must determine the best option by finding the overall cost per kWh. The plant's rated capacity is to be 600 MW. The capital cost per MW installed is estimated to be R 3.50, R 5.60 and R 7.30 million for the coal, nuclear and hydro-electric plants, respectively. The transmission components to the nearby civilisations are R 8.00 ×10^2, R 10.00 ×10^2, and R 7.00 ×10^2 for the coal, nuclear, and hydroelectric plants, respectively. The prevailing interest rate is 10.75%, and the depreciation is expected to be 5%, 9% and 7% for the coal, nuclear and hydroelectric plants, respectively. The anticipated annual load factor is 35%, and the plant will operate for 180 days per annum. Finally, the operating costs per kWh are R 12 \times 10^{-2}, R15.00 \times 10^{-2} and R33.00 \times 10^{-2} for the respective plants. [Coal=R0.565/kWh; Nuclear=R0.981/kWh; Hydro=R1.257/kWh]$

Added by Sean D.

Question

Please give Ace some feedback