Answer:
total expense for the new boiler = $229706.825
total expense for new boiler = $127512
Explanation:
provided information
initial power p1 = 80 kW
price C = $160000
cost index CI 1 = 187
cost index CI 2= 194
capacity factor f = 0.6
subsequent power p2 = 120 kW
present cost = $18000
to determine
total expense and cost for 40 kW
solution
we evaluate CN cost for the new boiler and CO cost for the existing boiler
where x represents the capacity of the new boiler
first we compute the current cost of the old boiler which is
current cost CO = C ×
.............1
substituting the value here
current cost = 160000 ×
updated current cost = $165989.304
and
employing power sizing strategy for 124 kW
CN/CO =
...............2
insert value and calculate CN
CN/CO =
CN / 165989.304 =
CN = 211706.825
therefore the new expense = $211706.825
hence
total expense for the new boiler amounts to
total expense = new expense + current cost
total exp = 211706.825 + 18000
boiler expense total = $229706.825
and
concerning a 40 kW unit, the calculated new cost will be
applying equation 2
CN/CO =
CN / 165989.304 =
CN = 109512
thus the new cost is $109512
therefore
total expense for the new boiler is
total exp = new cost + current cost
total expense = 109512 + 18000
total cost for the new boiler = $127512