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A power company is planning to replace a 30-year-old thermal power generator with a capacity of 200 MW with a new generator with a

A power company is planning to replace a 30 -year-old thermal power generator with a capacity of ( 200 mathrm{MW} ) with a 

A power company is planning to replace a 30-year-old thermal power generator with a capacity of 200 MW with a new generator with a capacity of 1000 MW. They ask an engineering consultant to answer the following questions: (a) If the cost was $300 million 30 years ago and is $1000 million today, what is the implied cost-capacity factor? (b) If the cost index 30 years ago was 300, and the cost-capacity factor is 0.8, what is the implied cost index today? (c) If the cost index has increased by a factor of 4.5, what is the implied cost-capacity factor? 7

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