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3. A company requires 375,000 kw-hr for electrical power per year which it pays for at the rate of PO.16 per kw-hr. It is proposed

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3. A company requires 375,000 kw-hr for electrical power per year which it pays for at the rate of PO.16 per kw-hr. It is proposed to build a power plant which will supply the above requirements for electrical power and studies reveal the following: First Cost of the Power Plant P250,000 Annual Operation & Maint. P20,000 Salvage Value at the End of Life P30,000 Life of Power Plant 15 years Taxes & Insurance 2% Present of Return 10% Would you recommend building the power plant

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