1. If hardness removal were to be discontinued at the treatment plant, which alternative would be the most cost-effective? 6. If the cost of electricity decreased to 4 ¢/kWh , which alternative would be the most cost effective ?
2. At what electricity cost would the following alternatives just break even: (a) alternatives I and 2, (b) alternatives I and 3, (c) alternatives I and 4?
A self-employed chemical engineer is on contract with Dow Chemical, currently working in a relatively high-inflation country. She wishes to calculate a project’s PW with estimated costs of $35,000 now and $7000 per year for 5 years beginning 1 year from now with increases of 12% per year thereafter for the next 8 years. Use a real interest rate of 15% per year to make the calculations
(a) without an adjustment for inflation and (b) considering inflation at a rate of 11 % per year.
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