A company wants to build an electric power station with 5MW power powered by natural gas. The cost to build the central is 10 million
A company wants to build an electric power station with 5MW power powered by natural gas. The cost to build the central is 10 million TL. This station will produce 50x10^6 kWh energy the first year and this will decrease 3% annually. The elelctricity produced will be sold 250 TL/MWh and electric price escalation is %18 yearly. To produce 1kWh electricity, 0.2 m^3 natural gas will be consumed. Price of natural gas is 1.1 TL/m^3 and escalating annually %19. Other expenses are: constant expenses for the company is 50TL/ kW-year and variable expenses is 0.01 TL/kWh and both of them will increase 17% monthly. Discount amount is 24% annually and the economic life is 25 years.
Calculate if this investment is economically viable by using future worth method
Step by Step Solution
3.46 Rating (159 Votes )
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started