Shut-down costs are estimated to be 400m and the cost of


Mid Central Light and Power is planning a nuclear facility. Expected first costs are $1.2B, and the annual net revenue is estimated to be $75M. The life is 40 years, and the interest rate is 7%. Shut-down costs are estimated to be $400M, and the cost of caring for the hazardous wastes is $10M per year for the 100 years after the facility is shut down. What is the PW of the facility?

 

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Business Economics: Shut-down costs are estimated to be 400m and the cost of
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