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3- A municipal power plant uses neutral gas from an existing pipeline at an annual cost of S40,000 per year. A new pipeline would initially
3- A municipal power plant uses neutral gas from an existing pipeline at an annual cost of S40,000 per year. A new pipeline would initially cost $100,000, but it would reduce the annual cost to 10,000 per year. a. Assume an analysis period of 25 years and no salvage value for either pipeline. The interest rate is 6%. Using the equivalent uniform annual cost (EUAC), should the new pipeline be built? b. The power plant uses natural gas. What are some of the non-economic benefits to the municipality of this energy source over others? Develop three primary advantages and disadvantages
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