(Answered) Mdcentral light and power is planning a nuclear facility

Management Studies

MidCentral Light and Power is planning a nuclear facility. Expected first costs are $1.2B, and the annual net revenue is estimated to be $75M. The life is 40 years, and the interest rate is 7%. Shut-down costs are estimated to be $400M, and the cost of caring for the hazardous wastes is $10M per year for the 100 years after the facility is shut down. What is the PW of the facility?

The answer is -$236,350,000

I have tried at least 10 different equations using the (P/F,i,N) and (P/A,i,N) factors, but none of the combinations I am using are coming up with the correct answer.

FYI: (P/A,7%,40)=13.332
(P/F,7%,40)=0.0668
(P/A,7%,100)=14.269
(P/F,7%,100)=0.00115

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