Mechan Engin Design Projects
Mechan Engin Design Projects ME 481
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This 2 page Class Notes was uploaded by Princess Rolfson on Saturday September 19, 2015. The Class Notes belongs to ME 481 at Michigan State University taught by Staff in Fall. Since its upload, it has received 33 views. For similar materials see /class/207534/me-481-michigan-state-university in Mechanical Engineering at Michigan State University.
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Date Created: 09/19/15
ME 481 Mechanical Engineering Design Projects Engineering Economics Worked Examples A company has decided to air condition their manufacturing facility They are trying to decide between an absorption refrigeration system and a vapor compression refrigeration system The following economic data is available Absorption System Vapor Compression System Capital Cost 125000 85000 Annual Operating 15000 20000 Cost The life of both systems is estimated to be 15 years and the interest rate for the company is 13 Using a present value analysis determine which system should be purchased What would be the annual operating cost of the vapor compression system needed to make the two systems equivalent in terms of cost Solution Our present value for either system will be calculated from P PV P A 7 iN cap op A where our PA function is given by p 11N 1 101315 1 i N 15 64624 A 11 i 0131 013 Then PvA 125000 15000 64624 221936 and PvV 85000 20000 64624 214248 So the vapor compression system has the lower cost and should be purchased Since electricity prices have a tendency to increase over time it might be of interest to determine an operating cost for the vapor compression system that would make its cost equivalent to that of the absorption system Hence we want PvV PvA 221936 ME 418 ME Design Projects so that 21890 A PVAPcapV 221936 85000 0P v 30 N 64624 A or a 6 increase A homeowner is considering replacing their current gas fuel heating system with a solar heating system Both systems are to last 20 years and the homeowner s interest rate is 8 The initial cost for the furnaces is 1200 and the annual fuel cost 600 Determine the capital cost of the solar system that will make it competitive with the gas fueled system Solution To determine the acceptable capital cost of our solar system we will let it be equal to the present value cost of the gas fueled system or P Pcaps PVG PcapG AopG39X17N For i 008 and N 20 years we find 7 20 98181 0081 008 A i1iN so that P S 1200 600981817091 cap An experimental research station located in the wilderness must provide its own electricity Two options are being considered wind turbine and gasoline powered generator Determine the energy cost in kWhr for each proposed system The following conditions apply System Generating Up Time C apital Annual Annual Power kW Cost Maintenance Operating Cost Cost Wind Turbine 15 50 15000 5 00 0 Gasoline 10 75 500 500 2500 Generator For the calculation an interest of rate of 15 and a lifetime of 20 years should be used Solution For the wind turbine we have A PcapAP01520 AIn AO