Combined-cycle power plants use twocombustion turbines

Assignment Help Management Theories

Reference no: EM131092557

29. Combined-cycle power plants use twocombustion turbines to produce electricity. Heat from the first turbine's exhaust is captured to heat water and produce steam sent to a second steam turbine that generates additional electricity. A 968-megawatt combined-cycle gas fired plant can be purchased for $450 million, has no salvage value, and produces a net cash flow (revenues less expenses) of $50 million per year over its expected 30-year life.

If the hurdle rate (MARR) is 12% per year, how profitable an investment is this power plant?
What is the simple payback period for the plant? Is this investment acceptable?

Reference no: EM131092557

Questions Cloud

How climate change impact on global businesse : Write an article:-Give critics on how climate change impact on global businesses. Introduction(a)Damage to property and infrastructure(b)Reduction in productivity

External factor from the competitive forces model : 1. Choose either an internal or external factor from the competitive forces model for an organization you are familiar with. Explain how it can be used to address how much should be invested on an IT infrastructure.

What is the power received by the antenna : What force is exerted by the radio waves on the antenna?

Budgets and the importance of demonstrating : Our Discussion for this week will focus on budgets and the importance of demonstrating how programs will be sustained beyond the grant funding period.

Combined-cycle power plants use twocombustion turbines : 29. Combined-cycle power plants use twocombustion turbines to produce electricity. Heat from the first turbine's exhaust is captured to heat water and produce steam sent to a second steam turbine that generates additional electricity.

Determine the profit-maximizing price and quantity : ECON 705 Assignment. Determine equations for P=f(Q), MR=f(Q), ATC=f(Q, Q2), AVC=f(Q, Q2), MC=f(Q, Q2). Recall that your marginal equations should be derivatives of your totals! Determine the profit-maximizing price and quantity

Successful in the strategic environment : Why the qwerkywriter might fail and why the manufacturers if laptops and tablets might be more successful in the strategic environment.

Economic profits or losses in the long run : Need help writing: Write a two-page essay that explains why in perfect competition, there are no economic profits or losses in the long run.

What is globalization : What is globalization? What is the relationship between globalization and information technology?

User Account

All Pages