136
POWER PLANT ENGINEERING
M
2
= Simultaneous maximum demand = 50 mW
Diversity factor =
58
50
=
1.16.
Ans.
Example 3. In a steam power plant the capital cost of power generation equipment is Rs. 25 ×
10
5
. The useful life of the plant is 30 years and salvage value of the plant to Rs. 1 × 10
5
. Determine by
sinking fund method the amount to be saved annually for replacement if the rate of annual compound
interest is 6%.
Solution.
P = Capital cost = Rs. 20 × 10
5
S = Salvage value = Rs. 1 × 10
5
n = Useful life = 30 years
r =
Compound interest
A = Amount to be saved
per year for replacement
A =
[(P – S) ]
{(1
)
1
n
r
r
+
−
=
5
5
30
[(20 10
1 10 )0.06]
{(1
0.06)
1}
×
− ×
+
−
=
Rs. 24,000.
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