Question
Chungyang Dam is being constructed across the Hungshui River in southern China. The dam will produce electricity to serve over 500,000 people in the region.
Chungyang Dam is being constructed across the Hungshui River in southern China. The dam will produce electricity to serve over 500,000 people in the region. The initial cost is 4 billion yuan and annual operating costs are 35 million yuan. A major overhaul of the electric generation facilities estimated to cost 700 million yuan will occur at the end of Year 25. The dam and generating plant have no salvage value, but must be torn down and removed at the end of Year 50 for 185 million yuan. Ishan Electric has a MARR of 12%.
(a) What annual benefit in yuan is needed for a B/C ratio of 1?
(b) Use the Internet and current exchange rates to find the annual benefit in U.S. dollars. (c) What are the top 3 sources for electricity generated from renewable power in the U.S.? List three benefits and three disbenefits for each source.
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