PW15 Round to two decimal places Evaluate a combined cycle p

?PW(15?%)=?

?(Round to two decimal? places.)

Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 15% per year. Pertinent cost data are as follows. Power Plant Investment cost Useful life Market value (EOY 16) Annual operating expenses Overhaul cost-end of 5th year Overhaul cost-end of 10th year $11,000 16 years $5,000 $2,000 $200 $500

Solution

PW at 15% = -11000 + 5000(P/F, 15%, 16) - 2000(P/A, 15%, 16) - 200(P/F, 15%, 5) - 500(P/F, 15%, 10)

= -11000 + 5000*0.1069 - 2000*5.9542 - 200*0.4972 - 500*0.2472

= -22,596.94