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Interview Question

Project Analyst Interview

How would you valuate a power plant?

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Interview Answer

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Power plants are like any other factory that produces a product and can be valued using similar methods. Analyze the estimated power demand for the coming years and price per KwH. Then subtract depreciation, maintenance, and expendables (ie. coal or fuel rods). Also factor in replacement cost of the factory and shutdown costs for complete lifecycle analysis. Valuation would be a factor of the desired ROI.

Randy on Jan 11, 2011

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