Critics have charged that, in carrying out an economic analysis, the commercial nuclear power industry does not
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(a) The criticism that the economic analysis is overoptimistic because it omits "mothballing" costs is not justified, since the addition of a cost of 50% of the initial cost to "mothball" the plant decreases the 8.95% rate of return only to approximately 8.77%.
(b) If the estimated life of the plants is more realistically taken to be 25 years instead of 40 years, then the criticism is justified. By reducing the life to 25 years, the rate of return of approximately 9% without a "mothballing" cost drops to approximately 7.7% when a cost to "mothball" the plant equal to 50% of the initial cost is added to the analysis.
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