Posted on by Judy

2.2 Allamuchy Township needs more water from Ahote Creek. The town engineer has selected two plans for comparison: a gravity plan (divert water at a point 10 miles up Ahote 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. The analysis will assume a 50-year life, 10% interest, and no salvage value. Use an annual cash flow analysis to find which plan is more economical. Gravity $5,400,000.00 $2,500,000.00 Pumping Initial investment Additional investment 10th year $400,000.00 Annual O&M Power Cost per year Average first 10 years Average next 40 years $23,000.00 $48,000.00 $90,000.00 $280,000.00 a) Calculate the EUAC of the gravity plan. [2 points] b) Calculate the EUAC of the pumping plan. [2 points] c) Which plan should be adopted and why? [1point+ 1 points] https://d2vlcm61l7u1fs.cloudfront.net/media%2F4d2%2F4d2a4884-65b5-4677-9ab1-cecf9d6acfd1%2Fphp81JH7h.png

https://d2vlcm61l7u1fs.cloudfront.net/media%2F7b3%2F7b3ebba8-4f65-4ee5-9351-2abdbdde9fa1%2FphpZXi1BN.png
 
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