Business, 25.11.2021 08:40 aaayymm

A municipal power plant uses natural gas from an existing, leaky, pipeline at an annual cost of $40,000 per year. A new pipeline would initially cost $100,000, but it would reduce the annual cost of natural gas to $10,000 per year. a. Assume an analysis period of 25 years and no salvage value for either pipeline. The interest rate is 6%. Using annual equivalent cost (AEC), should the new pipeline be built?
b. The power plant uses natural gas. What are some of the non-economic benefits to the municipality of this energy source over others? Develop three primary advantages and disadvantages

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A municipal power plant uses natural gas from an existing, leaky, pipeline at an annual cost of $40,...

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