Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 18% per year. Pertinent cost data are as follows: Investment cost Useful life Market value (EOY 15) Annual operating expenses Annual expenses Overhaul cost-end of 5th year Overhaul cost-end of 10th year Power Plant (thousands of Php) Php 1,100,000 15 years Php 500,000 Php 50,000 Php 290,000 Php 12,500 Php 25,000

Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 18% per year. Pertinent cost data are as follows: Investment cost Useful life Market value (EOY 15) Annual operating expenses Annual expenses Overhaul cost-end of 5th year Overhaul cost-end of 10th year Power Plant (thousands of Php) Php 1,100,000 15 years Php 500,000 Php 50,000 Php 290,000 Php 12,500 Php 25,000

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

Evaluate a combined cycle power plant on the basis of the PW method when the
MARR is 18% per year. Pertinent cost data are as follows:
Investment cost
Useful life
Market value (EOY 15)
Annual operating expenses
Annual expenses
Overhaul cost-end of 5th year
Overhaul cost-end of 10th year
Power Plant (thousands of Php)
Php 1,100,000
15 years
Php 500,000
Php 50,000
Php 290,000
Php 12,500
Php 25,000

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