HW 23-24 - Therefore, this farmer would not want to make...

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Bryce DaFonte BRAE 236 HW 23-24 12/1/2010 Energy Cost Efficiency Evaluation Initial Costs for Changes: New Pump: $30,000 New Motor: $5,000 DU to 0.95: $1,000/ac = 80 AC * 1,000 = $80,000 Cost to switch to time of use: $300 Total Initial Cost: $116,300 The Initial Annual Pumping Cost: $30,113 The Annual Pumping Cost after Changes: $6,020 So after making the initial changes to the system, the annual pumping cost decreases by $24,093. It will take 4.83 years in order for the farmer to pay for the initial costs of the changes.
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Unformatted text preview: Therefore, this farmer would not want to make these changes since it takes so long for the system to pay for itself. Paying for itself in five years does not seem that long for a system which will be more cost effective in the future, but a farmer does not want to wait that long. The initial and improved spreadsheets are attached to this document....
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This note was uploaded on 11/18/2011 for the course BRAE 433 taught by Professor Styles during the Fall '10 term at Cal Poly.

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