Question: A power company is considering how to increase its generating capacity to meet expected demand in its growing service area. Currently, the company has 7

A power company is considering how to increase its generating capacity to meet expected demand in its growing service area. Currently, the company has 750 megawatts (MW) of generating capacity but projects it will need the following minimum generating capacities in each of the next five years.
Years
12345
Min Capacity in MW 78086095010601180
The company can increase its generating capacity by purchasing four different types of generators10 MW,25 MW,50 MW, and/or 100 MW. The cost of acquiring and installing each of the four types of generators in each of the next five years is summarized in the following table:
Cost of Generator (in $1,000s) in Year
Generator Size 12345
10 MW $300 $250 $200 $170 $145
25 MW $460 $375 $350 $280 $235
50 MW $670 $558 $465 $380 $320
100 MW $950 $790 $670 $550 $460
1. Implement the model in MS Excel and report what size generators should be purchased in which year? (Optimal soln: $3,115,000)

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