Assume you are working for the government and are asked to evaluate the cost and...
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Accounting
Assume you are working for the government and are asked to evaluate the cost and benefits between two different nuclear power plants based on two different technologies, E and U.
Both E and U provide the same cash flows, but they differ in initial costs and in the cost per annum due to storing radioactive waste.
E has an initial cost of 1000 and a cost of 1 per year for the next 2,000,000 years.
U has an initial cost of x and a cost of 1 per year for the next 2,000 years.
Calculate x so that both E and U have the same costs in present values. What is your conclusion?
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