Book: Engineering Economy 16th Edition

Problem: 5-57 all parts. Please include cash flow diagram if applicable.

Thank you.

Unless stated otherwise, discrete compounding of interest and end-of-period cash flows should be assumed in all problem exercises for the remainder of the book. All MARRs are "per year." The number in parentheses that follows each problem refers to the section from which the problem is taken. A solar sea power plant (SSPP) is being considered in a North American location known for its high temperature ocean surface and its much lower ocean temperature 100 meters below the surface. Power can be produced based on this temperature differential. With high costs of fossil fuels, this particular SSPP may be economically attractive to investors. For an initial investment of $100 million, annual net revenues are estimated to be $15million in years 1-5 and $20million in years 6-20. Assume no residual market value for the SSPP a. What is the simple payback period for the SSPP? b. What is the discounted payback period when the MARR is 6% per year? a. winat is the simple payback period tor the ssppn cWould you recommend investing in this project