Question
Apex Energy is evaluating the economics of building a 1000-megawatt nuclear power plant for $1.4 billion. The plant will have net revenue of $400 million
Apex Energy is evaluating the economics of building a 1000-megawatt nuclear power plant for $1.4 billion. The plant will have net revenue of $400 million per year and will operate for 30 years. At the end of the 30-year life, it will cost $3.5 billion to shut the plant down and dispose of the nuclear waste. Use the MIRR method with a borrowing rate of 12% per year and a reinvestment rate of 18% per year to calculate the external rate of return for this project. You must draw a correct cash flow diagram to get.
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Engineering Economic Analysis
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
9th Edition
978-0195168075, 9780195168075
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