Economics

ECONOMICS ANALYSIS OF BUILDING POWER PLANTThe goal of the projectGoal is to clear and operate independent office plants (IPPs ) for the genesis , The goals of spot in private own power plant is to minimize personify in its summons . To be assured of uninterruptible power supply . To isolate the ships company from the problems such as sudden price changes , light power supply and government legislation concerning the power effort . Also , the purpose of this project is to serve in the contagion and distribution of power to its own industrial own power needs . And to complement the Government s efforts to improve the power empyrean by helping to bridge the huge energy falling out in a timely manner , and to alleviate the form of several industrialists in the country . The goal of Independent big businessman Plant is to initiate the emergence of high reliability in power supply , especially for the industrial sector . about of the goals is attributed to its operations . The company so-and-so control the level of generation , the cost of producing the electricity , Also to help the government in the electricity shortage . The result of the project is on that point depart be available power supply for other new-fashioned company The company can maximize production therefrom giving more than job opportunities the government can ingest more taxes . And these go away be utilise for more alkali project for the macro of the countryThe Opportunity Cost of the ProjectThe opportunity cost of the project is the cost of investing the money to a more profitable endeavor instead of the project . The cost of deliverance the 500 ,000 .00 in a bank it will obtain interest with the prevailing interest of 16 percent per year . This money can use as added capital for the company it will be converted into finished product and will earn mark up with a conservative appraisal of fifty percent per unit . The money can be invested in money commercialize which turn back an interest of duplicate its amount for a certain period .

This project entails of acquiring an increase in fixed assets which makes the company highly supplement . These fixed assets incur more cost in operation , operating supplies , taxes , and maintenance , now this cost can be considered as opportunity lost such that this money could be could use for a profitable investment . This amount can be estimated to doubling the capitalization . Several industries are equanimous to expand production capacity , and those which have shutdown because of power supply problems are expected to come back on stream after the completion of this power plant . Because there will be available power that can use for the other companies . The generation of electrical power is a development industry . The opportunity cost could be that this will be invested in a more profitable project which yield higher profit as compared to this power plants . The privately owned plants are being constructed to profit from the emerging energy market resulting from deregulation . These power operations are gearing up perhaps to sell energy in other companies farther more...If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper