Required information A government-funded wind-based electric power generation company in the southern part of the country has developed the following estimates (in $1000) for a new turbine farm. The MARR is 10% per year and the project life is 25 years. Benefits: $45,000 in year 0; $31,000 in year 4 Government savings: $2,000 in years 1 through 20 Cost: $64,000 in year O Disbenefits: $3000 in years 1 through 10 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Calculate the Pl value. The Pl value is 1.025

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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Required information
A government-funded wind-based electric power generation company in the southern part of the country has developed
the following estimates (in $1000) for a new turbine farm. The MARR is 10% per year and the project life is 25 years.
Benefits: $45,000 in year 0; $31,000 in year 4
Government savings: $2,000 in years 1 through 20
Cost: $64,000 in year O
Disbenefits: $3000 in years 1 through 10
NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
Calculate the Pl value.
The Pl value is 1.025
Transcribed Image Text:Required information A government-funded wind-based electric power generation company in the southern part of the country has developed the following estimates (in $1000) for a new turbine farm. The MARR is 10% per year and the project life is 25 years. Benefits: $45,000 in year 0; $31,000 in year 4 Government savings: $2,000 in years 1 through 20 Cost: $64,000 in year O Disbenefits: $3000 in years 1 through 10 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Calculate the Pl value. The Pl value is 1.025
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