G.3. A proposed geothermal energy project has an initial cost of $1,000K. In addition it will re- quire an infinite series of periodic maintenance expenditures at five-year intervals following the first maintenance expenditure at EOY 2. Find the equivalent annual cost with n →∞ and i = 88 percent per year. ΕΟΥ Expenditure 0 Initial cost $1,000K 2 Periodic maintenance 140K 7 Same 200K 12 Same 260K 17 Same 320K etc to

G.3. A proposed geothermal energy project has an initial cost of $1,000K. In addition it will re- quire an infinite series of periodic maintenance expenditures at five-year intervals following the first maintenance expenditure at EOY 2. Find the equivalent annual cost with n →∞ and i = 88 percent per year. ΕΟΥ Expenditure 0 Initial cost $1,000K 2 Periodic maintenance 140K 7 Same 200K 12 Same 260K 17 Same 320K etc to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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