The first 5 years of a revenue requirements analysis for a public utility is presented below. The

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The first 5 years of a revenue requirements analysis for a public utility is presented below. The fraction of total capitalization that is debt is 35 percent. Answer the following questions.

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a. What is the amount of the investment?

b. What is the MACRS recovery period?

c. What is the cost of borrowed capital (as a percent)?

d. What is the revenue requirement in year 1 ?

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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