Midcentral light and power is planning a nuclear facility

Assignment Help Business Management
Reference no: EM131234950

MidCentral Light and Power is planning a nuclear facility. Expected first costs are $1.2B, and the annual net revenue is estimated to be $75M. The life is 40 years, and the interest rate is 7%. Shut-down costs are estimated to be $400M, and the cost of caring for the hazardous wastes is $10M per year for the 100 years after the facility is shut down. What is the PW of the facility?

The answer is -$236,350,000

I have tried at least 10 different equations using the (P/F,i,N) and (P/A,i,N) factors, but none of the combinations I am using are coming up with the correct answer.

  • FYI: (P/A,7%,40)=13.332
  • (P/F,7%,40)=0.0668
  • (P/A,7%,100)=14.269
  • (P/F,7%,100)=0.00115

Reference no: EM131234950

Questions Cloud

Pre-trade data for home in a heckscher-ohlin model : Consider the following pre-trade data for Home in a Heckscher-Ohlin model with two goods (wine and cheese) and two factors (capital and Labour).
Explain how capm assists in measuring both risk and return : Explain how the CAPM assists in measuring both risk and return. Explain how the CAPM assists in calculating the weighted average costs of capital (WACC) and its components.
Discuss the role of global businesses in your home : Discuss and debate the role of global businesses in your home and foreign countries. Is the sole purpose of a business to provide a return for their stockholders ("the business of business is business") or do businesses have a broader social, envi..
Find the coordinates of third impact point of the particle : Impact of a Particle in a Circle A particle m is fired with initial velocity v0 from the intersection of a circle with radius R and the x-axis. Assume e = 1 and determine the coordinates of the third impact point of the particle with a wall in Fig..
Midcentral light and power is planning a nuclear facility : MidCentral Light and Power is planning a nuclear facility. Expected first costs are $1.2B, and the annual net revenue is estimated to be $75M. The life is 40 years, and the interest rate is 7%. Shut-down costs are estimated to be $400M, and the..
Has vertical integration strengthened its market position : Illustration Capsule 6.4 describes how Kaiser Permanente has made vertical integration a central part of its strategy. What value chain segments has Kaiser Permanente chosen to enter and perform internally? How has vertical integration aided the orga..
What are the objectives of macroeconomic policy : What are the objectives of macroeconomic policy? Find the targets for each objective by Bank Negara Malaysia (BNM).
Describe a synergistic team : Describe a synergistic team that you have observed or been a part of. What recognizable characteristics were present in this team? What are some of the challenges associated with synergistic teams
Find the angular speed of the particle for a uniform motion : A Particle in a Cone A particle of mass m slides without friction inside an upside-down conical shell of semi vertical angle α, as shown in Figure 2.65.

Reviews

Write a Review

Business Management Questions & Answers

  Hotel and restaurant management-accounting management

These articles should come from a trade journal (Ex. Hotel and Restaurant Management, Accounting Management Quarterly, popular magazine (Ex. Time, Money) and a business newspaper (Ex. Wall Street Journal, Atlanta Business Chronicle).

  How you intend to ensure the organization''s vision

How you intend to ensure the organization's vision, mission, and people strategies and values statements are aligned with the proposed strategic plan.

  Activities of a physician partnership

Discuss and explain the why a larger scope of activities of a physician partnership is likely to be associated with a more successful partnership.

  Describe the history and core business of each company

Describe the history and core business of each company. Compare and contrast the approach to management that each company has pursued in order to embrace innovation

  What areas would you select to enact the proposed changes

Examining Hewlett-Packard in 2001, use the change options matrix to determine what areas of change were available. What areas would you select to enact the proposed changes and why?

  Development and career management

Show the strengths and drawbacks in using this method to train this topic to a group of 18 employees and explain in detail the way you would evaluate the effectiveness of this training offered. Why have you chosen this evaluation process?

  What is strategic management

What is strategic management and what are the roles of mission and vision statements in strategic management?

  Explain an introduction and background for mcdonalds

The company is McDonalds. All I need is an introduction/background for McDonalds. Could you along with the information give me a bulletpoint of the important information to which I feel put onto a power point.

  Positive and negative aspects of workplace conflict

What are the positive and negative aspects of workplace conflict? Share examples from your professional experience to illustrate your answers. What are some differences in conflict management between unionized and non-unionized settings? Describe ..

  Discuss key element that made guerrilla marketing successful

determine the best possible way to leverage Facebook. From the first e-Activity, discuss the key elements that made the guerrilla marketing so successful. Explain your rationale.

  What is the annualized yield to maturity

Has outstanding $1,000 face value 10% coupon bonds that make semiannual payments, and have 16 years remaining to maturity. If the current price for these bonds is $1,118.74, what is the annualized yield to maturity?

  Some companies use a performance measurement process based

some companies use a performance measurement process based on an employee reviewing their own performance. the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd