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Question: Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows:
Power Plant
(thousands of $)
- Investment cost                            $13,000
- Useful life 15 years
- Market value (EOY 15)                    $3,000
- Annual operating expenses              $1,000
- Overhaul cost-end of 5th year         $200
- Overhaul cost-end of 10th year       $550

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92314556

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