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Unformatted text preview: capacity and it costs about $300,000 to purchase each of such units. The typical life of these units is 25 years and each unit requires minimum 600 ft 3 /min gas flow to operate and it generates maximum 0.5 MW of electricity. Ignore the operational or maintenance cost of the unit. Assume that the revenue from each of such units when operated at design capacity is about $30,000 per year. a. Prepare a detailed (year by year) recommendation memo to your client regarding when and how many generator units shall be purchased. b. Estimate the total profit from the gas to energy plant at the end of 15 years and 50 years after the landfill first started accepting waste. Ignore the depreciated value of the unit after its useful life. Note that your costs and profits will be in net present value (NPV). hw-5 Page 1 of 1 4/2/2006 Instructor: Milind V. Khire, Ph.D., P.E....
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- Spring '07