Business, 15.02.2020 02:55 amandaparrish2323

An energy-conservation study has produced a base case that is a heat-recovery project. The TCI is $5.0 MM and the project provides an annual net profit of $1.0 MM year. Two add-on alternatives are proposed as possible modifications to the base case:

(i) The addition of an additional heat exchanger, which will cost an additional $2.0 MM of TCI and will result in a total annual net profit of $1.8 MM/year for the combined base case and the additional heat exchanger.
(ii) The addition of a steam turbine for cogeneration of heat and power. The turbine coupled with the heat-recovery network and the additional heat exchanger. The turbine will cost $4.0 MM in addition to the TCI of the base-case heat-recovery network and the additional heat exchanger. It will result in a total annual net profit of $2.2 MM/year for the combined base case, additional exchanger, and turbine.

The company has a 15% per year minimum hurdle rate. Which projects should you recommend?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 06:30, henriquetucker

Double corporation acquired all of the common stock of simple company for

Answers: 2

continue

Business, 22.06.2019 14:30, Hannahdavy5434

Stella company sells only two products, product a and product b. product a product b total selling price $50 $30 variable cost per unit $20 $10 total fixed costs $2,110,000 stella sells two units of product a for each unit it sells of product b. stella faces a tax rate of 40%. stella desires a net afterminustax income of $54,000. the breakeven point in units would be

Answers: 3

continue

Business, 22.06.2019 18:00, Elephants12

What would not cause duff beer’s production possibilities curve to expand in the short run? a. improved manufacturing technology b. additional resources c. increased demand

Answers: 1

continue

Business, 22.06.2019 20:50, ajsoccer1705

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.

Answers: 1

continue

You know the right answer?

An energy-conservation study has produced a base case that is a heat-recovery project. The TCI is $5...