Some particulars for a project are as follows.Initial Capital Cost in year 0 ($Mn)Follow-up 'one-off' cost in year 1 ($Mn)Annual Operating Cost ($Mn/yr)Annual Benefits ($Mn/yr)Project Closure Cost, at end of project life($Mn)Useful Life (years)Interest/Discount rate (percent)Correct Answers100030010% of capital cost4009,254 (with margin: 5)200207What is the Life Cycle Cost of the project - expressed in future value term?(your answer must be rounded off to the nearest million dollars, i.e., no decimal places)

The life cycle cost of a project is the total cost of the project over its complete lifespan…

Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off' cost in year 1 ($Mn) Annual Operating Cost ($Mn/yr) Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 1000 300 10% of capital cost 400 200 20 7 What is the Life Cycle Cost of the project - expressed in future value term? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)

Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off' cost in year 1 ($Mn) Annual Operating Cost ($Mn/yr) Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 1000 300 10% of capital cost 400 200 20 7 What is the Life Cycle Cost of the project - expressed in future value term? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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