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A public-private initiative in Texas will significantly expand the wind-generated energy through- out the state. The cash flow for one phase of the project involving
A public-private initiative in Texas will significantly expand the wind-generated energy through- out the state. The cash flow for one phase of the project involving Central Point Energy, a trans-mission utility company, is shown. Given reinvestment rate of 14% per year for excess funds and 12% for MARR, Determine:
Year | Net cash flow (1000 units) |
0 | 480 |
1 | 220 |
2 | -960 |
3 | 25 |
4 | 2 |
How many number of ROR values is expected and why?
the Return on invested capital (ROIC), also known as Composite rate of return, CRR)
Is the project economically viable?
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