The estimated cost of a completely installed and ready-to-operate 40-kilowatt generator is $30,000. Its annual maintenance costs arc estimated at $500. The 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.()8 per kilowatt-hour. how long will it take before this generator becomes profitable? Consider the MA RR to be 9% and the salvage value of the machine to be $2,000 at the end of its es1ima1ed 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 estimated at $500. The 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.()8 per kilowatt-hour. how long will it take before this generator becomes profitable? Consider the MA RR to be 9% and the salvage value of the machine to be $2,000 at the end of its es1ima1ed 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 estimated at $500. The 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.()8 per kilowatt-hour. how long will it take before this generator becomes profitable? Consider the MA RR to be 9% and the salvage value of the machine to be $2,000 at the end of its es1ima1ed life of 15 years.
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