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Hi, I am having with this question. Can you please provide an answer, and a brief explanation? Thanks. A new power plant will cost Newburg
Hi, I am having with this question. Can you please provide an answer, and a brief explanation? Thanks.
A new power plant will cost Newburg $2,100,000 to build and $230,000 per year to operate for its 25-year life, when its salvage value is zero. The higher efficiency of the new plant will benefit the community by lowering utility bills by $21 per year for each of the $20,000 residents of Newburg. The plant's air pollution is considered a disbenefit and will cost the resident $3 per person each year. If i = 5%, calculate the benefit/cost ratio. Should the new power plant be built? (Please show back-up in the form of calculations on how you arrived at your answer) O Yes O No
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