Some particulars for a project are as follows: Capital Cost ($ Mn) 1000 Annual Operating cost ($ Mn/yr) 10%...

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Finance

Some particulars for a project are as follows:
Capital Cost ($ Mn)
1000
Annual Operating cost ($ Mn/yr)
10% of Capital Cost
Annual Benefits ($Mn/yr)
400
Useful Life (years)
20
Interest/Discount rate (percent)
10
a) What is the Life Cycle Cost (LCCs) of the project – expressedin present value and future value terms?
b) What is the Life Cycle Cost (LCCs) of the project – with year10 as the base year? c) What is the NPV of the project with year 15as the base year?
d) What is the Pay-back (PB) period for this project?
e) What is Equivalent Annual Cost (EAC) for this project?
f) At what discount rate will this project become unviable?

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Some particulars for a project are as follows:Capital Cost ($ Mn)1000Annual Operating cost ($ Mn/yr)10% of Capital CostAnnual Benefits ($Mn/yr)400Useful Life (years)20Interest/Discount rate (percent)10a) What is the Life Cycle Cost (LCCs) of the project – expressedin present value and future value terms?b) What is the Life Cycle Cost (LCCs) of the project – with year10 as the base year? c) What is the NPV of the project with year 15as the base year?d) What is the Pay-back (PB) period for this project?e) What is Equivalent Annual Cost (EAC) for this project?f) At what discount rate will this project become unviable?

Capital Cost ($ Mn)	1000
Annual Operating cost ($ Mn/yr)	10% of Capital Cost
Annual Benefits ($Mn/yr)	400
Useful Life (years)	20
Interest/Discount rate (percent)	10