D.2. An electric power dam is proposed with the following estimated data: cost of new dam = $12,000K cost of new generator = $ 5,000K The generator must be replaced every 15 years, and the cost escalates 4 percent per year. annual O & M costs at EOY 1 through EOY 5 = $500K/yr O & M cost at EOY 6 = $600K/increasing $10K/yr/yr thereafter salvage value of dam at end of life = $1,000K life = permanent interest rate i= 10% Find the capitalized cost of the electric power dam.
D.2. An electric power dam is proposed with the following estimated data: cost of new dam = $12,000K cost of new generator = $ 5,000K The generator must be replaced every 15 years, and the cost escalates 4 percent per year. annual O & M costs at EOY 1 through EOY 5 = $500K/yr O & M cost at EOY 6 = $600K/increasing $10K/yr/yr thereafter salvage value of dam at end of life = $1,000K life = permanent interest rate i= 10% Find the capitalized cost of the electric power dam.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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