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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 Summary

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

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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 ...

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