An integrated, combined cycle power plant produces 290 MW of electricity by gasifying coal. The capitalinvestment for the plant is $530 million, spread evenly over two years. The operating life of the plant isexpected to be 15 years. Additionally, the plant will operate at full capacity 74% of the time (downtime is 26% ofany given year). The MARR is 5% per year.a. If this plant will make a profit of three cents per kilowatt-hour of electricity sold to the power grid, what is thesimple payback period of the plant? Is it a low-risk venture?b. What is the IRR for the plant? Is it profitable?

Power Plant Produces - 290 W Capital Investment = 530 mn. Expected life = 15 years Capacity = 74%…

Answered: An integrated, combined cycle power…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A transit system is considering buying 6 more buses to provide better service. It will cost $100,000 for buying a new bus and $15,000 per year for maintenance and operation for the following 8 years. If the city’s MARR is 8%, what is the equivalent uniform annual cost of this project? Assume the bus has no value at the end of 8 years.
Now assume an investment cost of $1.50 per watt for the solar panels and the various equipment needs to connect the panels to the electricity grid. This investment cost is in year zero. Include the additional assumptions of: (i) the annual energy cost savings using $0.07 per KWH for electricity price with generated KWH computed in #a occur starting in year one with 1 to 1 net metering allowing the full benefit of energy cost savings to be obtained, (ii) a 20-year life span for the panels, (iii) zero annual maintenance costs, and (iv) an interest rate of 2.0% which reflects a post-tax certificate of deposit rate of interest. and having 29,226 as energy KWh generated per year calculate the following annual benefits and annual costs
A water supply system is being considered for a small district. The system requires an initial investment of P8M, will operate for 15 years and will be sold for P0.4M after that time. Annual operations and maintenance costs is expected to be P48 000.00 for the first year and is expected to increase by P12 000.00 each year thereafter. Determine the annual cost of this project using i= 11%. (Ans. - P1,210,425.43)-PLEASE USE AN ACTUAL FORMULA NOT EXCEL
Your friend made an investment of P 45,000.00 for 60 days at 15% simple interest. If withholding tax is 20%, what is the net interest that he will receive at the end of two months?
Eng. Eco. Q5. Sam invests a sum of $5,000 in a bank at a nominalinterest rate of 12% for 10 years. The compounding is quarterly. Find thematurity amount of the deposit after 10 years.
i will 10 upvotes do fast Lifetime savings accounts, known as LSAS, allow people to invest after - tax money without being taxed on any of the gains. If an engineer invests $11,000 now and $ 11,000 each year for the next 15 years, how much will be in the account immediately after the last deposit, provided the account grows by 11% per year? After the last deposit, the balance in the account will be $
Consider three investment plans at an annual rate of 9.38%. • Investor A: Invest $2000 per year for the first 10 years of your career. At the end of 10 years, make no further investments, but reinvest the amount accumulated at the end of 10 years for the next 31 years. • Investor B: Do nothing for the first 10 years. Then start investing $2000 per year for the next 31 years. • Investor C: Invest $2000 per year for the entire 41 years. Note that all investments are made at the beginning of each year, the first deposit will be .made at the beginning of age 25 (n=0), and you want to calculate the balance at age of 65 (n=41).
Determine the breakeven resale price 15 years from now of an apartment house that can be bought today for $250,000. Its annual net income is $22,000. The owner wants a 10% annual return on her investment.
Recently, an Internet service provider (ISP) in the UK implemented a “no-strings US-style flat-rateplan” whereby its commercial subscribers can send and receive unlimited volume (measured ingigabytes) up to a cap of 10,000 gigabytes (per month) via their broadband Internet service for aflat monthly fee of £399.99. Under the old “metered plan,” Alistair Willoughby Cook sent andreceived a grand total of 3,500 gigabytes over their broadband connection and paid £399.99 inusage fees in a typical 30-day month.If all customers are exactly like Alistair, what is the impact of the flat-rate plan on consumerwelfare and the company’s profits? Explain.
On average, it needs P250,000 per year and an additional P600,000 every 4 years for major repairs to maintain a certain three-storey office building. How much must be paid now to take care of these payments on a bank that offers 8% per year? choices: none of the above P143,999.078 P4,789,355.06 P5,000,000.06
Charlie has a project for which he had determined a present worth of $56,620. He now has to calculate the IRR for the project, but unfortunately he has lost complete information about the cash flows. He knows only that the project has a five-year service life and a first cost of $190,000, that a set of equal cash flows occurred at the end of each year, and that the MARR used was 10 percent. What is the IRR for this project?
Kwame Nkrumah University of Cape Coast, Legon spent GHS1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500 kw, have a life expectancy of 20 years and suppose the discount rate is 10%.a. If electricity can be purchased for costs of GHS0.10 per kwh, how many hours per year will the solar panels have to operate to make this project break even?b. If efficient systems operate for 2,400 hours per year, would the project break even?c. The university is seeking a grant to cover capital costs. How big of a grant would make this project worthwhile (to the university)?

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS