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Please provide a Cash Flow Diagram with the solution. (25 Pts.) 3. Rochester Institute of Technology is considering a plan to build an 8-megawatt cogeneration
Please provide a Cash Flow Diagram with the solution.
(25 Pts.) 3. Rochester Institute of Technology is considering a plan to build an 8-megawatt cogeneration plant to provide for its power needs in the future. The cost of the new plant is projected to be $41 million. The University consumes 55,000 megawatt-hours per year at a current cost of $120 per mega- watt hour. With the new cogeneration plant the University will be able to reduce its cost by one-half of what it now pays. What Rate of Return, " "", will the University make on its investment if the plant lasts for 30 years? Use a Net Present Worth Balancing Equation and a manual iteration process to find " (25 Pts.) 3. Rochester Institute of Technology is considering a plan to build an 8-megawatt cogeneration plant to provide for its power needs in the future. The cost of the new plant is projected to be $41 million. The University consumes 55,000 megawatt-hours per year at a current cost of $120 per mega- watt hour. With the new cogeneration plant the University will be able to reduce its cost by one-half of what it now pays. What Rate of Return, " "", will the University make on its investment if the plant lasts for 30 years? Use a Net Present Worth Balancing Equation and a manual iteration process to find Step by Step Solution
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