Question

answer for part a) is 307 miles.

4. The costs of mining and transporting coal are coal. Consider that the coal in the ground is valued at 50 cents/(million kJ), that mining costs are 8 dollars/(short-ton), and that transportation costs are 8 cents/(short-ton mile). If the price of other delivered coals is 160 cents/(million kJ), find: (a) the radius from the mine, in miles, that a coal of 32,560 kJ/kg can be delivered and sold for zero profit or loss; (b) the same radius for a coal with a heating value of 23,200 kJ/kg; and (c) the minimum heating value of a coal that could be used locally (i.e., a mine mouth plant). [18 pts] roughly independent or the tieatimg vanue or u

Answer 1

B)Given heating value=23,200 Kj/kg

for 1 million KJ coal required=1,000,000/23200=43.10 Kg

ground value of coal =$0.50/43.1=$0.0116

mining cost=$0.008/kg

cost of transporttaion=$0.08/1000=$0.00008/kg km

delivered coal price=$1.60/43.1=$0.037/kg

miles=(0.037-0.0116-0.008)/0.00008=217.5 radius from mines

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C)Minimum heating value

0.5+0.008*(1000000/heating value)=1.60

heating value=7272 kj/kg