Assume the capital costs for treatment is based on $5000 per foot of column. Thr

Question

Assume the capital costs for treatment is based on $5000 per foot of column. Three columns are to be built all to 11.5 feet tall. There are also operation and maintanence costs based on both the amount of flow treated and pounds of COD removed as shown below.

O&M Costs:

$0.55 per 1000 gallons treated

$100 per pound of COD removed

Treatment system information:

100,000 gallons treated per day

0.005 pounds per gallon COD

1) Find the Capitalized Costs and annual O&M cost for this design. Assume an interest rate of 6%.

2) Find the 20yr Net Present Worth of this design assuming $50,000 in annual savings once the system is installed and operating (also assuming O&M costs). Assume an interest rate of 6%.

Explanation / Answer

1.

Capitalized Costs and Operating Cost: cost per foot of column $5000 3 columns 11.5 Foot tall To be Built Capitalized Costs($) 172500 (5000*3*11.5) 1000 Gallons treated cost 0.55 No.of Gallons treated per day 100000 Gallons cost per day($) 55 1 Gallon needs 0.005 pound 1 pound = $100 COD Removed cost per day 50000 Total Operating Cost per day ($) 50055

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