A Steam Engine with a Boiler Temperature of 227ºC and an Exhaust

question 24

Multiple Choice

A steam engine with a boiler temperature of 227ºC and an exhaust temperature of 27ºC has a maximum efficiency of approximately

• A)67%
• B)88%
• C)14%
• D)12%
• E)40%

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Definitions:

Profitability Index

A financial metric that calculates the ratio of the present value of future cash flows from an investment to the initial investment cost, used to evaluate the desirability of projects.

Present Value

Present value refers to the current value of a future amount of money or series of cash flows, calculated using a specific rate of return.

Net Present Value

A calculation used to assess the profitability of an investment, considering the difference between the present value of cash inflows and outflows over a period of time.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.