Question: Problem 4 (15 Points) Suppose TXU is exploring the possibility of building a new 1GW power plant. Assuming the utilization factor is 0.8 and electricity

Problem 4 (15 Points) Suppose TXU is exploring the possibility of building a new 1GW power plant. Assuming the utilization factor is 0.8 and electricity price is 32 $/MWh. 1. Given the parameters shown in Table ] how much is the potential profit each year for the power plant? (do not consider investment cost in this question) (5 Pts) 2. Is it profitable to build such a plant (assuming the interest rate is 5%)7 (5 Pts) 3. Suppose the plant has been built up and run for 10 years already. In the 11th year, TXU could make a maintenance to this plant, and this could extend the life of plant by extra 5 vears (total plant life is extended to 20 vears). The cost of this maintenance is 400 $/kW of plant capacity. Should TXU choose to take this maintenance? Give your reason. (5 Pts) Table 4: Parameter of the plant Investment cost /kW 5008 / kW Expected plant life (years) 15 years Heat rate at rated output | 8000 Btu/kWh Expected fuel cost 1.2$/MBtu

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