An electrical utility is experiencing a sharp power demand that continues to grow at a high rate in a certain local area.
Two alternatives are under consideration. Each is designed to provide enough capacity during the next 25years and both will consume the same amount offuel so fuel cost is not considered in the analysis.
service for 25 years and have a salvage value of
$250 comma 000250000
On the basis of thepresent-worth criterion if the firm uses
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