Ch-5, Selection of Plant

example 5.1 Page 87

In [1]:
aerpe=100*10**6
md=25*10**3
def ucc(dd,e):
   u=600*dd+0.3*e #rs per kW
   return u
sc=30*10**3

a_cci=9000#per kW
a_shr=4000
b_cci=10500
b_shr=3500
c_cci=12000
c_shr=3000
salc=3000
sal=2280
sh=10
tax=0.04
ins=0.5*10**-2
cir=0.07
hv=5000#l cal per kg
fuc=225#rs per ton
acsnm=150000#for each plan
pl=20
dr=cir/((cir+1)**pl-1)
tfcr=cir+dr+tax+ins
print "depreciation rate %f \ntotal fixed rate =%f"%(dr,tfcr)
a_ci=a_cci*sc ;b_ci=b_cci*sc ;c_ci=c_cci*sc
a_afca=a_ci*tfcr ;b_afca=b_ci*tfcr ;c_afca=c_ci*tfcr
a_afuc=a_shr*fuc*10**8/(hv*10**3)
b_afuc=b_shr*fuc*10**8/(hv*10**3)
c_afuc=c_shr*fuc*10**8/(hv*10**3)
ass=12*(salc+sh*sal)
tota=a_afca+ass+a_afuc+acsnm
totb=b_afca+ass+b_afuc+acsnm
totc=c_afca+ass+c_afuc+acsnm
print "\nannual fixed cost of a is Rs%d   fuel cost of plan a is Rs%d and total cost of a is Rs%d"%(a_afca,a_afuc,tota)
print "\nannual fixed cost of b is Rs%d   fuel cost of plan b is Rs%d and total cost of b is Rs%d"%(b_afca,b_afuc,totb)
print "\nannual fixed cost of c is Rs%d   fuel cost of plan c is Rs%d and total cost of c is Rs%d"%(c_afca,c_afuc,totc)

ppt=ucc(md,aerpe)
print "\nannual cost of purchasing electricty from utility is Rs600x%d+0.3x%.1e is Rs%d"%(md,aerpe,ppt)

depreciation rate 0.024393 
total fixed rate =0.139393

annual fixed cost of a is Rs37636089   fuel cost of plan a is Rs18000000 and total cost of a is Rs56095689

annual fixed cost of b is Rs43908771   fuel cost of plan b is Rs15750000 and total cost of b is Rs60118371

annual fixed cost of c is Rs50181453   fuel cost of plan c is Rs13500000 and total cost of c is Rs64141053

annual cost of purchasing electricty from utility is Rs600x25000+0.3x1.0e+08 is Rs45000000

example 5.2 Page 88

In [2]:
aer=100*10**6
md=25*10**3
def ucc(dd,e):
   u=600*dd+0.3*e #rs per kW
   return u
p=30*10**3
ap=9000#per kW
ahr=4000
bp=10500
bhr=3500
cp=12000
Chr=3000
salc=3000
sal=2280
sh=10
t=0.04
i=0.5*10**-2
r=0.07
hv=5000#l cal per kg
fuc=225#rs per ton
mc=150000#for each plan
n=20
dr=r/((r+1)**n-1)
pwf=r/(1-(r+1)**(-n))
print "persent of worth factor is %f"%(pwf)
afc=ahr*fuc*10**8/(hv*10**3)
bfc=bhr*fuc*10**8/(hv*10**3)
cfc=Chr*fuc*10**8/(hv*10**3)
ass=12*(salc+sh*sal)
aaoc=ass+mc+afc
baoc=ass+mc+bfc
caoc=ass+mc+cfc
ai=ap*p ;bi=bp*p ;ci=cp*p
atac=(t+i)*ap*p+aaoc
btac=(i+t)*bp*p+baoc
ctac=(i+t)*cp*p+caoc
uts=ucc(md,aer)
apw=atac/pwf ;bpw=btac/pwf ;cpw=ctac/pwf; utss=uts/pwf
ta=apw+ai ;tb=bpw+bi; tc=cpw+ci
print "\nannual cost excludinding interest and \ndepreciation of a \t\tRs%d \npersent worth factor \t\t %f  \npresent worth annual cost of a is Rs%d \n investement of a is \tRs%d \n total persent worth of a is \t%d"%(atac,pwf,apw,ai,ta)
print "\n\n annual cost excludinding interest and \ndepreciation of b \t\tRs%d \npersent wort factor \t\t%f  \npresent worth annual cost of b is Rs%d \n investement of b is \tRs%d \n total persent worth of b is \t%d"%(btac,pwf,bpw,bi,tb)
print "\n \nannual cost excludinding interest and \ndepreciation of c \t\tRs%d \npersent wort factor \t\t%f  \npresent worth annual cost of c is Rs%d \n investement of c is \tRs%d \n total persent worth of c is \t%d"%(ctac,pwf,cpw,ci,tc)
print "\n \nannual cost excludinding interest and \ndepreciation of utility service \tRs%d \npersent wort factor \t\t\t%f  \npresent worth annual cost of utility service is Rs%d \n investement of utility service is \t\t nill \n total persent worth of utility service is %d"%(uts,pwf,utss,utss)
print "\n\n\tsince the present worth of the utility service is the minimum,it is the obvious choice \nout of the other plans,plan A is the best since it has the lowest present worth"

persent of worth factor is 0.094393

annual cost excludinding interest and 
depreciation of a 		Rs30609600 
persent worth factor 		 0.094393  
present worth annual cost of a is Rs324278538 
 investement of a is 	Rs270000000 
 total persent worth of a is 	594278538


 annual cost excludinding interest and 
depreciation of b 		Rs30384600 
persent wort factor 		0.094393  
present worth annual cost of b is Rs321894885 
 investement of b is 	Rs315000000 
 total persent worth of b is 	636894885

 
annual cost excludinding interest and 
depreciation of c 		Rs30159600 
persent wort factor 		0.094393  
present worth annual cost of c is Rs319511232 
 investement of c is 	Rs360000000 
 total persent worth of c is 	679511232

 
annual cost excludinding interest and 
depreciation of utility service 	Rs45000000 
persent wort factor 			0.094393  
present worth annual cost of utility service is Rs476730641 
 investement of utility service is 		 nill 
 total persent worth of utility service is 476730641


	since the present worth of the utility service is the minimum,it is the obvious choice 
out of the other plans,plan A is the best since it has the lowest present worth

example 5.3 Page 89

In [3]:
aer=100*10**6   #from example 5.1
md=25*10**3
def ucc(dd,e):
   u=600*dd+0.3*e #rs per kW
   return u
p=30*10**3
ap=9000#per kW
ahr=4000
bp=10500
bhr=3500
cp=12000
Chr=3000
salc=3000
sal=2280
sh=10
t=0.04
i=0.5*10**-2
r=0.07
hv=5000#l cal per kg
fuc=225#rs per ton
mc=150000#for each plan
n=20
dr=r/((r+1)**n-1)
pwf=r/(1-(r+1)**(-n))
uts=ucc(md,aer)
afc=ahr*fuc*10**8/(hv*10**3)
bfc=bhr*fuc*10**8/(hv*10**3)
cfc=Chr*fuc*10**8/(hv*10**3)
ass=12*(salc+sh*sal)
aaoc=ass+mc+afc
baoc=ass+mc+bfc
caoc=ass+mc+cfc
aw=(((dr+t+i)*ap*p+aaoc)/r)+ap*p
bw=(((dr+t+i)*bp*p+baoc)/r)+bp*p
cw=(((dr+t+i)*cp*p+caoc)/r)+cp*p
utt=uts/r+p
print "\n plan A is \t\tRs.%d \n plan B is \t\tRs.%d \n planC is \t\tRs.%d \nutility services is \tRs%d"%(aw,bw,cw,utt)
print "the utility service has the lowest capitalized cost and is the obvious choice. Out of the other plans,plan A is the best"

 plan A is 		Rs.801366999 
 plan B is 		Rs.858833880 
 planC is 		Rs.916300760 
utility services is 	Rs642887142
the utility service has the lowest capitalized cost and is the obvious choice. Out of the other plans,plan A is the best

example 5.4 page 90

In [4]:
from numpy import arange
aer=100*10**6
md=25*10**3
utse=6600*10**4
p=30*10**3
ap=9000#per kW
ahr=4000
bp=10500
bhr=3500
cp=12000
Chr=3000

salc=3000
sal=2280
sh=10
t=0.04
i=0.5*10**-2
r=0.07
hv=5000#l cal per kg
fuc=225#rs per ton
mc=150000#for each plan
n=20
dr=r/((r+1)**n-1)
pwf=r/(1-(r+1)**(-n))
afc=ahr*fuc*10**8/(hv*10**3)
bfc=bhr*fuc*10**8/(hv*10**3)
cfc=Chr*fuc*10**8/(hv*10**3)
ass=12*(salc+sh*sal)
aaoc=ass+mc+afc
baoc=ass+mc+bfc
caoc=ass+mc+cfc

sol_a_totalannualcost=(t+i)*ap*p+aaoc
sol_b_totalannualcost=(i+t)*bp*p+baoc
sol_c_totalannualcost=(i+t)*cp*p+caoc

sol_a_pinvestement=ap*p 
sol_b_pinvestement=bp*p 
sol_c_pinvestement=cp*p

sol_a_annuity=utse-sol_a_totalannualcost 
sol_b_annuity=utse-sol_b_totalannualcost 
sol_c_annuity=utse-sol_c_totalannualcost 

sol_a_ratioaandp=sol_a_annuity/sol_a_pinvestement 
sol_b_ratioaandp=sol_b_annuity/sol_b_pinvestement 
sol_c_ratioaandp=sol_c_annuity/sol_c_pinvestement 
def alt(r):
    R=abs(r/(1-wr))
    return R
ra=round((sol_a_ratioaandp)*100)
rb=round((sol_b_ratioaandp)*100)
rc=round((sol_c_ratioaandp)*100)

for x in arange(-0.12,-0.07,0.001): #for itration
    wr=(1+x)**n
    re=alt(x)
    re=(round(re*100))
    if  re==ra :
        sol_a_return=(abs(x)*100)
        #end
    if re==rb :
        sol_b_return=(abs(x)*100)
        #end
    if re==rc :
        sol_c_return=(abs(x)*100)
         #end
 #end
print "for (a)"
print "total annual cost Rs.%d\ninvestement Rs.%d\nannuity Rs%d \nratio of a and b %f \nrate of return %.1fpercent"%(sol_a_totalannualcost,sol_a_pinvestement,sol_a_annuity,sol_a_ratioaandp,sol_a_return)
print "for (b)"
print "total annual cost Rs.%d\ninvestement Rs.%d\nannuity Rs%d \nratio of a and b %f \nrate of return %.1fpercent"%(sol_b_totalannualcost,sol_b_pinvestement,sol_b_annuity,sol_b_ratioaandp,sol_b_return)
print "for (c)"
print "total annual cost Rs.%d\ninvestement Rs.%d\nannuity Rs%d \nratio of a and b %f \nrate of return %.1fpercent"%(sol_c_totalannualcost,sol_c_pinvestement,sol_c_annuity,sol_c_ratioaandp,sol_c_return)
sb=sol_b_annuity-sol_a_annuity
sc=sol_c_annuity-sol_b_annuity
ib=sol_b_pinvestement-sol_a_pinvestement
ic=sol_b_pinvestement-sol_a_pinvestement
rcb=sb/ib; rcc=sc/ic 
print "\nsaving in annual cost excluding interest and depreciation B over A \t %d C over A \t %d"%(sb,sc)
print "\nadditional investement P is \t\t\t\tB over A \t %d C over A \t %d"%(ib,ic)
print "\nrate of saving to investement \t\t\t\tAoverB \t\t %f BoverC  \t%f"%(rcb,rcc)
print "\nrate of return on capital investement\n evidently plan A is the best \t\t\t\tA over B \tNegative B over C \tNegative"

for (a)
total annual cost Rs.30609600
investement Rs.270000000
annuity Rs35390400 
ratio of a and b 0.131076 
rate of return 11.4percent
for (b)
total annual cost Rs.30384600
investement Rs.315000000
annuity Rs35615400 
ratio of a and b 0.113065 
rate of return 8.9percent
for (c)
total annual cost Rs.30159600
investement Rs.360000000
annuity Rs35840400 
ratio of a and b 0.099557 
rate of return 7.6percent

saving in annual cost excluding interest and depreciation B over A 	 225000 C over A 	 225000

additional investement P is 				B over A 	 45000000 C over A 	 45000000

rate of saving to investement 				AoverB 		 0.005000 BoverC  	0.005000

rate of return on capital investement
 evidently plan A is the best 				A over B 	Negative B over C 	Negative