A corn-to-ethanol plant is located 50.5 km from farm A and 170.5 km from farm B.
ID: 353503 • Letter: A
Question
A corn-to-ethanol plant is located 50.5 km from farm A and 170.5 km from farm B. Farm A will sell corn to the plant for $309.4/metric ton, while farm B will sell corn at a price of $258.1/metric ton. Each truckload can carry 11 metric ton, and the truck emits 220.5 g CO2 equivalent/metric ton-km. The plant needs 135.5 metric tons/year and the truck weighs 9.5 metric ton empty. Examine the two farms, considering both economics and greenhouse gas emissions. From which plant is it better to buy corn? Discuss the reason(s) for your selection.
Explanation / Answer
Farm A:
Distance from plant (D) = 50.5
price = 309.4
Demand = 135.5
Cost of corn from farm A = 135.5*309.4 = 41923.7
total truck weight after loading = 11+9.5 = 20.5
per load carbon emission = 220.5*20.5*50.5 = 228272.625 CO2 equivalent.
Farm B:
cost per metric ton = 258.1
total cost = 135.5*258.1 = 34972.55
distance from plant = 170.5 km
total carbon emissions = 220.5*20.5*170.5 = 770702.625
Hence, we can see that cost is less for farm B, but carbon emissions is more than 3 times the carbon emissions from farm A.
Hence, considering both, Farm A is better since carbon emissions is very less, and cost is just marginally high.
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