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A 15% rate of return would yield $1.98 billion annually. The annual profit from the power plant operation (revenue-expenses) is $1.35 billion. calculate each value,
A 15% rate of return would yield $1.98 billion annually. The annual profit from the power plant operation (revenue-expenses) is $1.35 billion.
calculate each value, including annual costs, annual revenue and the annualized payment factor.
A nuclear power plant capable of generating a rated output of 2,000 MWe costs $13,000,000,000 (13 billion dollars.) Assuming no inflation, a capacity factor of 90%, 8766 hours per year, a cost of operation (fuel, labor, everything) of $0.0015 per MJ of electric energy generated, and an electric sales price of $0.09 per kW-hr, determine if the company can meet a minimum internal rate of return of 15% for a 30 year investment. Hint: calculate an equivalent annual revenue (A) assuming the $13 billion were invested at 15%. Then compare that to the annual profit (electric sales - cost of operation). If the annual profit is more than A, then you are getting more than 15% return on investment. A nuclear power plant capable of generating a rated output of 2,000 MWe costs $13,000,000,000 (13 billion dollars.) Assuming no inflation, a capacity factor of 90%, 8766 hours per year, a cost of operation (fuel, labor, everything) of $0.0015 per MJ of electric energy generated, and an electric sales price of $0.09 per kW-hr, determine if the company can meet a minimum internal rate of return of 15% for a 30 year investment. Hint: calculate an equivalent annual revenue (A) assuming the $13 billion were invested at 15%. Then compare that to the annual profit (electric sales - cost of operation). If the annual profit is more than A, then you are getting more than 15% return on investmentStep by Step Solution
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