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Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off cost in year 1 |($Mn) 1000 300 10% of capital Annual Operating Cost ($Mn/yr) cost Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 400 200 20 7 What is the Life Cycle Cost of the project - with year 10 as the base year? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)

Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off cost in year 1 |($Mn) 1000 300 10% of capital Annual Operating Cost ($Mn/yr) cost Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 400 200 20 7 What is the Life Cycle Cost of the project - with year 10 as the base year? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)

Essentials Of Investments
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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Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) 1000 Follow-up 'one-off' cost in year 1 ($Mn) 300 10% of capital Annual Operating Cost ($Mn/yr) cost Annual Benefits ($Mn/yr) 400 Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 200 20 7 What is the Life Cycle Cost of the project - with year 10 as the base year? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)
Transcribed Image Text:Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) 1000 Follow-up 'one-off' cost in year 1 ($Mn) 300 10% of capital Annual Operating Cost ($Mn/yr) cost Annual Benefits ($Mn/yr) 400 Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 200 20 7 What is the Life Cycle Cost of the project - with year 10 as the base year? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)
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