Module12HWSol - simultaneously 11 12 The cost of the plant...

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Chapter 7: Drill Problems 8, 9, 10, 11, 12, 19 and Application Problems 8 (a,c), 9. Drill Problems: 8. The two plants differ in capacity. The cost estimate follows the power law and sizing model: 9. The location difference is counted through the price index: 10. This question consider the location change, inflation and capacity improvement simultaneously.
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Unformatted text preview: simultaneously. 11. 12. The cost of the plant has been computed in problem 10, which is $992 million. The transmission line cost is re-computed as: 19. Note that here only the stock is not tax deductable. Application Problems: 8(a) Note that following a learning curve, the installation is supposed to be expedited: (b) 1 $412,500 $505,230...
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