Problem
Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows:
Power Plant
(thousands of $)
Investment cost $13,000
Useful life 15 years
Market value (EOY 15) $3,000
Annual operating expenses $1,000
Overhaul cost-end of 5th year $200
Overhaul cost-end of 10th year $550
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.