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

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Chapter1: Making Economics Decisions
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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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Kansas Public Service Company wishes to determine the capitalized worth (present value of life
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
Transcribed Image Text:1 Kansas Public Service Company wishes to determine the capitalized worth (present value of life 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
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