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Chapter 9 - E-Courses

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BIOMASS PLANT-2<br />

Now let us say interest rate i=10%<br />

Then the life cycle cost is calculated as follows:<br />

Capital Cost =127700+8300+4150+37700+78150+20750+16550<br />

=Rs.293300<br />

8300<br />

4150<br />

37700<br />

78150<br />

20750<br />

Replacement Cost = + + + +<br />

10<br />

10<br />

15<br />

15<br />

10<br />

( 1+<br />

. 1)<br />

= Rs40533.6<br />

( 1+<br />

. 1)<br />

( 1+<br />

. 1)<br />

Maintenance cost = 1% 0f total capital cost per year<br />

( 1+<br />

. 1)<br />

= Rs. 24970.28<br />

Therefore,<br />

Life cycle cost =293300+40533.6+24970.58 = Rs.358803.8<br />

( 1+<br />

. 1)

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