Gallons of water for irrigation

Assignment Help Financial Management

Reference no: EM131890500

Should the following project be undertaken: A dam whose cost of construction is $500 a year for 3 years will generate each year 3 Billion KWH of electricity and 5 billion gallons of water for irrigation. Annual operating costs are $50 per annum while the value of products lost to submerged land is $65 each year. Electricity is to be sold at 5 cents per KWH and water for irrigation at 2 cents a gallon. For simplicity assume a life expectancy of 30 years for the project and a 0 discount rate.

Reference no: EM131890500

Questions Cloud

Explore the organizations website : Explore the organization's website. An organization's website usually provides updated, comprehensive information including links to current news items.

What is the cost of external equity : If the flotation cost is 15% of the issue's gross proceeds, what is the cost of external equity, re?

What will be next year eps : If investors require a 12% return, then what will be next year's EPS? (Hint: growth in earnings will be the same as growth in dividends.)

Difference between gambling and the stock market : what is the difference between gambling and the stock market. are the two really that much different? Cite sources please.

Gallons of water for irrigation : A dam whose cost of construction is $500 a year for 3 years will generate each year 3 Billion KWH of electricity and 5 billion gallons of water for irrigation.

What is the maximum level of accounts receivable : What is the maximum level of accounts receivable that ALei can carry and have a 40?-day average collection? period?

What is the? firm debt? ratio : Dearborn Supplies has total sales of $202 ?million, assets of $96 ?million, a return on equity of 30 ?percent, and a net profit margin of 7.7 percent.

What is the bond present value the coupons : What is the bond's present value if the coupons are paid semiannually?

Determining the efficiency analysis : The Brenmar Sales Company had a gross profit margin? (gross profitsdivided by ÷?sales) of 35 percent and sales of $9.2 million last year.

User Account

All Pages