We have the following data for a power plant: 1 MW CENTRAL ECONOMIC BALANCE Power: 1 Mwa
Question:
We have the following data for a power plant:
1 MW CENTRAL ECONOMIC BALANCE
Power: 1 Mwa
Maintenance cost: 3% per year
The initial cost of operation: 5% per year
Regulated Rate: $0.015/kWh (20 years)
Project cost = $750,000.00
Plant factor= 60%
Energy: 5256000 KWh
Income from regulated tariff: 78840
Annual revenue increase: 6%
Initial maintenance cost/year of annual maintenance (2% installation): $ 22,500.00
Annual maintenance increase: 5%
Initial cost of operation/year (1% Installation) $ 37,500.00
Annual operation increase: 3%
It is assumed that in year 10, an equipment update will be carried out whose cost will be 25% of the value of the investment = $187,500.00
SOLVE:
Find the IRR for 10 years.
Fundamentals of Thermodynamics
ISBN: 978-0471152323
6th edition
Authors: Richard E. Sonntag, Claus Borgnakke, Gordon J. Van Wylen