An electric utility company is considering a re-engineering of a major hydroelectric facility. The project would...
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An electric utility company is considering a re-engineering of a major hydroelectric facility. The project would yield greater capacity and lower cost per kilowatt-hour of power. As a result of the project, the price of power would be reduced. This is expected to increase the quantity of power demanded. The following data are available Effect of Reduced Price of Power 0.08 10,000,000 0.07 14,000,000 Current price ($/kWh) Current consumption (kWh/year) New price ($/kWh) Expected consumption (kWh/year) What is the annual benefit to consumers of power from this project? The annual benefit is $ An electric utility company is considering a re-engineering of a major hydroelectric facility. The project would yield greater capacity and lower cost per kilowatt-hour of power. As a result of the project, the price of power would be reduced. This is expected to increase the quantity of power demanded. The following data are available Effect of Reduced Price of Power 0.08 10,000,000 0.07 14,000,000 Current price ($/kWh) Current consumption (kWh/year) New price ($/kWh) Expected consumption (kWh/year) What is the annual benefit to consumers of power from this project? The annual benefit is $
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