Question: Electricity generating plant is typically built within 5 years with uniformly distributed expenditures per each year. A new construction schedule is considered in which the
Electricity generating plant is typically built within years with uniformly distributed expenditures per each year. A new construction schedule is considered in which the plant will be built within years with uniformly distributed expenditures. The sum of expenditures in both cases will be the same.
Calculate the change of capital cost in percent using the original schedule as a reference.
Use the following pattern for the answer: answer CoCnCo
where:
Co original schedule cost year build
Cn new schedule cost tear build
The interest rate in both cases is the same and equal to
Use the end of construction as the reference time point
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