Evaluate a combined cycle power plant

Reference no: EM131505827

Question: Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows:
Power Plant
(thousands of $)
- Investment cost    $13,000
- Useful life 15 years
- Market value (EOY 15)    $3,000
- Annual operating expenses    $1,000
- Overhaul cost-end of 5th year         $200
- Overhaul cost-end of 10th year $550

Reference no: EM131505827

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