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An integrated, combined cycle power plant produces 295 MW of electricity by gasifying coal The capital investment for the plant is $530 million, spread evenly

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An integrated, combined cycle power plant produces 295 MW of electricity by gasifying coal The capital investment for the plant is $530 million, spread evenly over two years The operating life of the plant is expected to be 19 years Additionally. the plant will operate at full capacity 73% of the time (downtime is 27% of any given year). a. If this plant will make a profit of three cents per kilowatt-hour of electricity sold to the power grid, what is the simple payback period of the plant? Is it a low-risk venture? b. What is the IRR for the plant? Is it profitable

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