Problem
What is the minimum annual revenue for breakeven? Maximum first cost? Minimum salvage value or maximum salvage cost? Construct breakeven charts for each.
Problem 10
What is the PW (at i = 10%) of the following electric power-generating project? There is a $180,000 overhaul cost in year 8. The first cost is $420,000, and the annual operating cost is $30,000. Revenue from power sales is expected to be $100,000 per year. The facility will have a salvage value of $75,000 at the end of year 15.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.