Thursday, 3 March 2016

A company invests Rs.10 lakhs and completes an energy efficiency project at the beginning of year 1 The firm is investing its own money and expects an internal rate of return IRR of at least 26%.doc


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ENERGY MANAGEMENT



Q.1 : A plant consumes 4,500 tons of furnace oil per year (GCV =10,200 kCal/kg), as well as  43,000 MWh of electricity per year. Draw the pie-chart of percentage share of each type of  energy based on consumption in kCal (1 kWh = 860 kCal)

Q2) How much Stream is recuire in a heat exchange to heat 120 kg/ hour of a process fluid From 40o C to 90o C. The specific heat of process fluid is 0.24 kCal/kg oC and the latent heat  of steam is 540 kCal/ kg

Q.3

The following table shows the import bill of fossil fuels in million metric tonnes (MMT) and its cost in Crores Rupees over the last eight years.
(i)        calculate the average annual percentage increase of fossil fuel imports
(ii)       calculate the average annual percentage increase of the import bill
(iii)     calculate the average costs for the last eight years, in Rs. Per metric ton of imported fossil fuels.

Q.4

Fuel substitution from a high cost fuel to a low cost fuel in boilers is common to reduce energy bill.  For the following situations calculate:

(i)                annual reduction in energy costs in Crore Rs.
(ii)             annual change in energy consumption in %. (Calorific value of fuels not required for calculations)

Before substitution:

            Steam output                       =                                  6 tons/hour
            Fuel consumption   =                                  1 ton oil per 13 tons of steam.
            Operating hours      =                                  6400 / Year
            Fuel costs                  =                                  Rs.13,000 /ton of oil
            Boiler thermal efficiency (yearly average)=       82%
           
After Substitution:

            Steam output                       =          6 tons/hour
            Fuel consumption   =          3 tons of waste wood per 13 tons of steam
            Fuel costs                  =          Rs.2,000 / ton of waste wood
            Boiler thermal efficiency (yearly average)         = 74%

Q.5 A company invests Rs.10 lakhs and completes an energy efficiency project at the beginning of year 1. The firm is investing its own money and expects an internal rate of return, IRR, of at least 26% on constant positive annual net cash flow of Rs.2 lakhs, over a period of 10 years, starting with year 1.

(i)                Will the project meet the firm’s expectations?
(ii)             What is the IRR of this measure?
Q.1) A waste heat recovery system can be installed in a furnace, which will cost Rs. 7,00,000/- to  install. This system is expected to have a useful life of 6 years. The salvage value will be Rs.  2,00,000/-. The system will reduce the energy cost by Rs. 2,00,000/- per year, when it operates at full capacity. However the plant will be operating at partial capacity for the first 3 years and the annual energy savings will be at 70% of the energy cost savings at full capacity (Rs. 1,40,000/-). (20 Marks)
The new system will entail a maintenance cost of Rs. 10,000/- per year for the first 3 years and Rs.12,000 per year for the next 3 years. A major overhaul is required in the 3rd year, which  will cost Rs 1,00,000/-
a)     If discount rate is 10%, calculate the NPV and find out whether this energy conservation measure is profitable
b)     What is the profitability index for the project?
Q.2
An energy auditor undertakes the energy audit of a steam system. The operating  data is given as per the schematic diagram given below


Key data and assumptions are enunciated below:

a)                     Specific enthalpy of water at 10 kg/cm2 (g) pressure   :           186 kCal/kg
b)                    Specific enthalpy of evaporation/latent heat at 10 kg/cm2 (g) pressure      :           478 kCal/kg

c)                     Dryness fraction of steam generated       :           0.95
d)                    Coal consumption   :           840 kg/ hr
e)                     Net calorific value (NCV) of imported coal         :           6269 kCal/kg
f)                     Moisture in coal      :           3.5%
g)                     Hydrogen in coal     :           4%
            Other parameters as indicated in the above figure      :          

Based on preliminary data assessment as stated above, calculate the following:
                      
i.          Feed water temperature to boiler
ii.         Boiler efficiency by direct method on GCV basis
iii.       If the condensate return is enhanced to 6 TPH (steam generation of 7 TPH remaining same) what will be the reduction in coal consumption?






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A company distributes its products by trucks loaded at its only loading station


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Quantitative Methods


1. It is said that management is equivalent to decision-making. Do you agree? Explain.

2. All quantitative techniques have hardly any real-life applications.” Do you agree with
the statement? Discuss.

3. A company manufactures 3 types of parts which use precious metals platinum and
gold. Due to storage of these precious metals, the government regulates the amount that
may be used per day. The relevant data with respect to supply, requirements and profits
are summarized in the table as follows: Daily allotment of platinum and gold are 160 gm
and 120 gm respectively. How should the company divide the supply of scare precious
metals?

4. Write a note on the economic interpretation of the dual.

5. A sales manager wishes to assign four sales territories to four sales persons. The sales
persons differ in their sales acumen and, consequently, the sales expected to be effected
in each territory are different for each sales person. The estimates of sales per month for
each sales person in each territory are given below:
Suggest optimal assignment of the four sales persons to various territories and the total

6. Give the various sequencing models that are available for solving sequencing
problems. Give suitable examples.

7. Explain the basic queuing process. State the meaning of queue discipline and give its
role in queuing problem.

8. Give the role of queuing theory in decision-making and discuss its application.

9. A company distributes its products by trucks loaded at its only loading station.

10. Explain the steps involved in solution to dynamic programming problems.