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Annual cost of owning and operating the airway

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An underground airway is driven at a capital cost of $1.15 million. In its eight year life it is planned to pass an airflow of 120 m3/s at a frictional pressure drop of 720 Pa. The main fans operate at an efficiency of 72%. The annual interest rate is 9.5% and the average cost of power is $0.06 per kWh, determine the annual cost of owning and operating the airway. (Hint air power = pressure x air quantity).

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Solution Preview

There are two costs -
The annual capital cost
The annual operating cost
The capital cost is $1,150,000. We need to convert this to annual cost. This can be done by converting this amount to ...

Solution Summary

The solution explains how to calculate the annual cost of owning and operating the airway.