As an alternative to the coal-fired plant, PennCo could construct an 800 MW natural gasfired plant. This plant would require the same initial investment of $1.12 billion dollars to be depreciated over its 30-year life using the SL (straight line) method with (SV₃₀ = Salvage Value at year 30) SV₃₀ = 0. The capacity factor estimate of the plant would still be 80%, but the efficiency of the natural gasfired plant would be 40%. The annual operating and maintenance expense is expected to be $0.01 per kWh. The cost of natural gas is $8.00 per million Btu and the carbon dioxide tax is $15 per metric ton. Natural gas emits 55 metric tons of carbon dioxide per billion Btu produced. The effective income tax rate is 25%, and the after-tax MARR is 10% per year. Based on the after-tax cost of electricity, create a spreadsheet to determine whether PennCo should construct a natural gasfired or coal-fired plant. Note: 1kWh=3,413 Btu.

Solve it in spreadsheet (excel, also show steps of excel file which is cell references and formulas) and please DO NOT solve it on paper. And please follow the instructions given and don't just give any answer for likes