Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The National Investment Authority has announced an investment project for the generation and distribution of electric power, provided that the produced energy is sold

 

The National Investment Authority has announced an investment project for the generation and distribution of electric power, provided that the produced energy is sold to citizens. If the project data and technical data are as in the following table, find the minimum price of one ampere that the investor must pay so that the investment is feasible using the annual value method? Note that the plant manufacturer's instructions stress that periodic maintenance is carried out every year, except for the years in which comprehensive maintenance is carried out, bearing in mind that comprehensive maintenance takes place every certain period of time. 1- Production capacity (mA/year). 112 2- The purchase price and establishment of the station (million dinars) 3- The useful life (year). 110 2320 4- The price of rubble (million dinars). 140 5- Expenditures of the main office of the investor (million dinars/year). 15 6- Wages of engineers and workers in the station (million dinars/year). 25 7- Fuel charges (JD/ampere). 12 8- The cost of periodic maintenance (annual) (million dinars/year). 12 9- Comprehensive maintenance cost (million dinars/year). 1300 10- The date of the first comprehensive maintenance. 10 11-The time period between comprehensive maintenance Present and suffix 12 12-Prevalent annual period 12% 13- The annual interest that the investor desires is 13%.

Step by Step Solution

3.29 Rating (170 Votes )

There are 3 Steps involved in it

Step: 1

The minimum price of one ampere that the investor must ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Methods For Business

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam

11th Edition

978-0324651812, 324651813, 978-0324651751

More Books

Students also viewed these Finance questions

Question

True or False The slope of the line 2y = 3x + 5 is 3.

Answered: 1 week ago