Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 2

NRG Energy plans to construct a giant solar plant in Santa Teresa, NM to supply electricity tO₃0,000 southern NM and western TX homes. The plant will have 390,000 heliostats to concentrate sunlight ontO₃2 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