Page 1 of 1
PROBLEM 2: A pharmaceutical drugs manufacturing company consumes 600,000 kw-hrs of electrical energy annually and pays a
Posted: Thu May 19, 2022 9:12 am
by answerhappygod
- Problem 2 A Pharmaceutical Drugs Manufacturing Company Consumes 600 000 Kw Hrs Of Electrical Energy Annually And Pays A 1 (100.5 KiB) Viewed 67 times
PROBLEM 2: A pharmaceutical drugs manufacturing
company consumes 600,000 kw-hrs of electrical energy annually and pays an average of $2.00/kw-hr. A study being conducted to generate its own power to supply the
company with the energy required, shows that the power plant to be installed would require an initial investment of $2,000,000; annual operation maintenance of $800,000; and additional annual expenses of $220,000. The power plant has a 15-year life and a residual value of $200,000. If MARR=15%, determine whether the installation of the power plant is necessary or not.