ALTERNATIVE D

* Price of fuel (04 – Mar – 2019) average price around the world is 57.431 Php
based on www.globalpetrolprices.com (conversion of USD-Php) USD= 52.21 Php

* www.machinerytrader.com/listing/constructionequipment/forsale/list

𝑁𝑒𝑡 𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑒𝑑 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑐𝑜𝑠𝑡 = 𝑈𝑆𝐷 𝑐𝑜𝑠𝑡 𝑥 𝑃ℎ𝑝 𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛 𝑥 𝑁𝑜. 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠

= 1,000, 537.00 𝑥 52.21𝑃ℎ𝑝 𝑥 9

= 470142330.9 𝑃ℎ𝑝

𝑁𝑒𝑡 𝑎𝑛𝑛𝑢𝑎𝑙 𝐹𝑖𝑥𝑒𝑑 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑐𝑜𝑠𝑡

= 𝑁𝑒𝑡 𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑒𝑑 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑐𝑜𝑠𝑡 𝑥 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑓𝑖𝑥𝑒𝑑 𝑟𝑎𝑡𝑒 𝑐𝑜𝑠𝑡 (𝑤𝑤𝑤. 𝑟𝑒𝑠𝑒𝑎𝑟𝑐ℎ𝑔𝑎𝑡𝑒. 𝑛𝑒𝑡)

𝐹𝑜𝑟 𝑡ℎ𝑒 𝑓𝑖𝑥𝑒𝑑 𝑟𝑎𝑡𝑒 𝑐𝑜𝑠𝑡 𝑜𝑓 𝐻𝑦𝑢𝑛𝑑𝑎𝑖 𝑒𝑛𝑔𝑖𝑛𝑒 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑓𝑖𝑥𝑒𝑑 𝑟𝑎𝑡𝑒 𝑐𝑜𝑠𝑡

= 470142330.9 (0.20)

= 94028466.19𝑃ℎ𝑝

Mechanical Engineering journal; PF= .80

𝑁𝑒𝑡 𝑎𝑛𝑛𝑢𝑎𝑙 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑎𝑛𝑑 𝑚𝑎𝑖𝑛𝑡𝑒𝑛𝑎𝑛𝑐𝑒 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑥 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛 𝑎𝑛𝑑 𝑚𝑎𝑖𝑛𝑡𝑒𝑛𝑎𝑛𝑐𝑒 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡

𝑥 𝑛𝑜. 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠 𝑥 𝑃ℎ𝑝 𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛

= $800430 𝑥 9 𝑥 52.21 𝑃ℎ𝑝

= 376114052.7 𝑃ℎ𝑝

(𝐴. 𝐿. 𝑤𝑒𝑒𝑘𝑑𝑎𝑦𝑠 𝑥 313 𝑑𝑎𝑦𝑠) + (𝐴. 𝐿. 𝑠𝑢𝑛𝑑𝑎𝑦𝑠 𝑥 52 𝑑𝑎𝑦𝑠)

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑙𝑜𝑎𝑑 =
365

( 48.225 𝑥 313) + (36.3158 𝑥 52)

=
365

= 46.5283 𝑀𝑊

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐿𝑜𝑎𝑑 =
𝑃𝑙𝑎𝑛𝑡 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦

46.5283
= 𝑥 100
69.06
 = 67.3737%

57.431𝑃ℎ𝑝
) (
𝐿
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑓𝑢𝑒𝑙 𝑝𝑒𝑟 𝑚𝑒𝑔𝑎 𝑗𝑜𝑢𝑙𝑒 =
𝜌 × 𝐻𝑒𝑎𝑡𝑖𝑛𝑔 𝑉𝑎𝑙𝑢𝑒

57.431 𝑃ℎ𝑝
= 𝐿
0.885 𝑘𝑔 44.8 𝑀𝐽
×
𝐿 𝑘𝑔

𝑃ℎ𝑝
= 1.4485
𝑀𝐽

 Annual fuel and lubrication consumption cost = Cost of Annual Fuel Consumption
+ Cost of Lubrication Oil
= PHP 37710527030 + PHP 2567803.82
= PHP 37713094830
 Cost of Annual Fuel Consumption =
𝐴𝑛𝑛𝑢𝑎𝑙 𝑃𝑜𝑤𝑒𝑟 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑
𝑥 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑑𝑖𝑒𝑠𝑒𝑙 𝑓𝑢𝑒𝑙 𝑥 𝑢𝑛𝑖𝑡𝑠
𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑐 𝐹𝑢𝑒𝑙 𝐶𝑂𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛
*Annual Power Produced= 407587908 KWhr/y
*Specific Fuel Oil Consumption= 5.5866 KWhr/Li
KWhr
407587908 𝑝ℎ𝑝
year
Cost of Annual Fuel Consumption = 𝐾𝑊ℎ𝑟 𝑥 57.431 𝐿𝑖
𝑥 9 𝑢𝑛𝑖𝑡𝑠
5.5866
𝐿𝑖
= PHP 37710527030
𝑔 1 𝑘𝑔 𝐾𝑊ℎ𝑟
 Cost of Lubrication Oil=0.7 𝐾𝑊ℎ𝑟
x 1000𝑔
x 407587908 𝑦𝑟
x9 units
= PHP 2567803.82
*Annual Power Produced= 407587908 KWhr/yr
*Specific Fuel Oil Consumption= 0.7 g/ KWhr
 Annual Depreciation cost = 10%*((Original engine cost – 6.7%(Original cost))
= 0.10[PHP 470142330.9- .067(PHP 470142330.9)]
= PHP 15514696.92
 Total Annual Cost = (Annual fixed capital cost + Operating and maintenance cost
+ Annual fuel and lubrication cost) – Depreciation Cost
= 94028466.19+376114052.7+37713094830+15514696.92
= PHP 38198752050
𝑒𝑛𝑔𝑖𝑛𝑒 𝑐𝑜𝑠𝑡
 Capitalized Cost = initial engine cost + (total annual cost)/interest rate + (1+𝑖)𝑘 −1
where i = interest rate = 12 %
k = life of engine in years = 20 yrs.
= PHP 470142330.9 + (PHP 38198752050)/0.12 +
PHP 470142330.9
(1.12)20 −1
= PHP 318847451100