question archive A new power plant will cost Newburg $2,100,000 to build and $230,000 per year to operate for its 25-year life, when its salvage value is zero
A new power plant will cost Newburg $2,100,000 to build and $230,000 per year to operate for its 25-year life, when its salvage value is zero
Subject:EconomicsPrice: Bought3
A new power plant will cost Newburg $2,100,000 to build and $230,000 per year to operate for its 25-year life, when its salvage value is zero. The higher efficiency of the new plant will benefit the community by lowering utility bills by $21 per year for each of the $20,000 residents of Newburg. The plant's air pollution is considered a disbenefit and will cost the resident $3 per person each year. If i = 5%, calculate the benefit/cost ratio. Should the new power plant be built? (Please show back-up in the form of calculations on how you arrived at your answer)
_) Yes
__) No
