Determine the payback period for the plant

Reference no: EM132164945

Question: A new electric power generation plant is expected to cost $43,250,000 to complete. The revenues generated by the new plant are expected to be $3,875,000 per year, while operational expenses are estimated to be $2,000,000 per year. The plant will last 40 years, and the electric authority uses a 3% interest rate. Determine the benefit/cost ratio. Determine the payback period for the plant.

Reference no: EM132164945

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