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Economics

A new electric generation plant is expected to cost $43,250,000 to complete. The revenues generated by the new plant are expected to be $3,875,000 per year, while operational expenses are estimated to be $2,000,000 per year. If the plant is expected to last 40 years and the electric authority uses 3% as its cost of capital, determine the AW of costs in a benefit/cost analysis.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91386063

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