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5.) What is the present value of the following planned cash flow for a 30 year power plant project? Assume that the annual cost of
5.) What is the present value of the following planned cash flow for a 30 year power plant project? Assume that the annual cost of money is 3.9%. Draw the cash flow diagram and present your solution.
Initial Investment (construction costs) - $75,000,000
Annual operating costs - $1,000,000
Annual maintenance costs - $95,000
Projected decommissioning expenses $20,000,000
Projected income from scrap - $250,000
5.) What is the present value of the following planned cash flow for a 30year power plant project Assume that the annual cost of money is 3.9%. Draw the cash flow diagram and present your Solution Initial investment (construction costs) $75,000,000 Annual operating costs $1,000,000 Annual maintenance costs $95,000 Projected decommissioning expenses $20,000,000 Projected income from scrap $250,000 (Homework must be uploaded as a single .pdf or .docx file or it will not be accepted for grading.) 5.) What is the present value of the following planned cash flow for a 30year power plant project Assume that the annual cost of money is 3.9%. Draw the cash flow diagram and present your Solution Initial investment (construction costs) $75,000,000 Annual operating costs $1,000,000 Annual maintenance costs $95,000 Projected decommissioning expenses $20,000,000 Projected income from scrap $250,000 (Homework must be uploaded as a single .pdf or .docx file or it will not be accepted for grading.)Step by Step Solution
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