A steam boiler is required as part of the design of a new plant.The types of fuel that can be used to ignite the boiler are naturalgas fuel oil and coal. The cost of installation including allrequired controls is $40000 for natural gas $50000 for fuel oiland $120000 for coal. In addition the annual cost of fuel oil is$8000 less than the annual cost of natural gas and $12000 morethan the annual cost of coal. If the boiler is to be utilized for20 years and interest rate is 8% determine the bestalternative.
