Find the pw of the electric power-generating project

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Reference no: EM132171266

Question: What is the minimum annual revenue for breakeven? Maximum first cost? Minimum salvage value or maximum salvage cost? Construct breakeven charts for each.

Problem: What is the PW (at i = 10%) of the following electric power-generating project? There is a $180,000 overhaul cost in year 8. The first cost is $420,000, and the annual operating cost is $30,000. Revenue from power sales is expected to be $100,000 per year. The facility will have a salvage value of $75,000 at the end of year 15.

Reference no: EM132171266

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