Kansas Public Service Company wishes to determine the capitalized worth (present value of cycle cost) of a new windmill. Use an interest rate of 9% and the following costs: Purchase price Installation cost Annual O&M Overhaul (year 25) Residual value Expected life $725,000 $143,000 $12,000 $260,000 $32,000 40 years
Kansas Public Service Company wishes to determine the capitalized worth (present value of cycle cost) of a new windmill. Use an interest rate of 9% and the following costs: Purchase price Installation cost Annual O&M Overhaul (year 25) Residual value Expected life $725,000 $143,000 $12,000 $260,000 $32,000 40 years
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Pls solve it in excel also please provide the equation you used to get to the values.
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