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Question: It is desired to make a preliminary estimate of the cost of building a700 MW fossil-fuel plant. It is known that a 450-MW plant cost $100 million twenty (20) years ago when the approximate cost index was 550, and that the cost index is now 1, 300. The cost capacity factor for a fossil-fuel power plant is 0.76. Estimate the cost in millions of dollar of building the larger power plant today. (Enter your answer as a number that represents millions of dollars without the dollar sign.)

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Microeconomics, Economics

Category:- Microeconomics
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