Question: paraphse text: Using Table 3-3 from the guidance document, we estimate $1.6M in initial capital costs and about $175k per year in O&M (about $3.1M

paraphse text: Using Table 3-3 from the guidance document, we estimate $1.6M in initial capital costs and about $175k per year in O&M (about $3.1M over the life of the equipment) for the 540 kW generator. Table 4-5 uses a standard rate of $0.057/kWh for electricity, but due to increased energy costs in California we will assume $0.08/kWh run revenue. At this price, we can expect to to make about $378,000 per year. Appendix B.5 lays out the year-to-year financial analysis of this investment using a minimum acceptable rate of return (MARR) of 10.5%. In reviewing the costs and revenues set using present worth analysis, we can expect a minimum of 10.5% return on investment with additional profit. Given that an 18 year operating period is likely the minimum, we would recommend including the generation system as part of the proposed expansion

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