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Question: A new power plant will cost Newburg $2.1M to build and $230K per year to operate for its 25-year life, when its salvage value is zero. The higher efficiency of the new plant will lower utility bills by $21 per year for each of the 20,000 residents of Newburg. The plant's air pollution will cost residents $3 each per year. If i = 5%, should the new power plant be built?

Microeconomics, Economics

  • Category:- Microeconomics
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