Two Renewal Energy Alternatives Are Available for Providing Energy at a Remote

question 5

Essay

Two renewal energy alternatives are available for providing energy at a remote federal research facility. The cash flow estimates associated with each alternative are given below. Use the conventional B- C ratio method, with AW as the equivalent- worth measure, to determine which alternative should be selected at an interest rate of 14% per year over a 25- year study period. One alternative must be selected. $$\begin{array} { | l | l | l | } \hline & \text { Alternative I } & \text { Alternative II } \\\hline \text { Initial cost, } \$ & \$ 1,000,000 & \$ 990,000 \\\hline \text { Annual maintenance, } \$ / y r & \$ 380,000 & \$ 359,500 \\\hline \text { Annual benefits, } \$ / \mathrm { yr } & \$ 500,000 & \$ 459,500 \\\hline \text { Salvage value, } \$ & \$ 17,000 & \$ 15,800 \\\hline\end{array}$$

---

Definitions:

Action Potential

A temporary reversal of the electrical potential across the membrane of a neuron, leading to the transmission of an electrical signal along the neuron.

Electrical Signal

An impulse or transmission of information conveyed through the movement of electrical charge.

Axon

An elongated, thin extension of a neuron, also known as a nerve cell, which usually transmits electrical signals from the cell body of the neuron.

Synaptic Transmission

The process by which neurons communicate with each other by releasing neurotransmitters across a synapse to transmit signals to target cells.