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Engineering, 17.04.2020 02:18 RegencySlayer5304

You must supply a 100 MW load. You can buy a five year contract for 100 MW of power 24 hours a day for $130M. (You pay the $130M up front and can consume up to 100 MW per hour. Any power you do not use is lost. But, assume you will use all of it.) Alternatively, you can buy a 100 MW generator with a 30 year life for $70M and pay fuel and maintenance costs of $15/MWh. Analyze costs using a 4% real interest rate and determine which is the cheaper alternative.

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You must supply a 100 MW load. You can buy a five year contract for 100 MW of power 24 hours a day f...
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