The estimated cost of a completely installed and ready-to-operate 40-kilowatt generator is $30,000. Its annual maintenance costs arc estimntcd at $500. 111e energy that can be produced annually, at full load. is estimated to be 100,000 kilowatt-hours. I f the value of the energy produced is considered Lo be $0.08 per kilowau-hour. how long will it take before this genera tor becomes profitable? Consider the MARR to be 9% and the salvage value of the machine to be $2,000 at the end of its estimated life of 15 years.
The estimated cost of a completely installed and ready-to-operate 40-kilowatt generator is $30,000. Its annual maintenance costs arc estimntcd at $500. 111e energy that can be produced annually, at full load. is estimated to be 100,000 kilowatt-hours. I f the value of the energy produced is considered Lo be $0.08 per kilowau-hour. how long will it take before this genera tor becomes profitable? Consider the MARR to be 9% and the salvage value of the machine to be $2,000 at the end of its estimated life of 15 years.
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
Problem 1PS
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The estimated cost of a completely installed and ready-to-operate 40-kilowatt generator is $30,000. Its annual maintenance costs arc estimntcd at $500. 111e energy that can be produced annually, at full load. is estimated to be 100,000 kilowatt-hours. I f the value of the energy produced is considered Lo be $0.08 per kilowau-hour. how long will it take before this genera tor becomes profitable? Consider the MARR to be 9% and the salvage value of the machine to be $2,000 at the end of its estimated life of 15 years.
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