Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 5, Problem 2P
To determine

Calculate the required revenue.

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NRG Energy plans to construct a giant solar plant in Santa Teresa, NM to supply electricity to 30,000 southern NM and western TX homes. The plant will have 390,000 heliostats to concentrate sunlight onto 32 water towers to generate steam. NRG will spend $560 million in constructing the plant and $430,000 per year in operating it. If a salvage value of 20% of the initial cost is assumed, how much will the company have to make each year for 15 years in order to recover its investment at a MARR of 18% per year?
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