An integrated, combined cycle power plant produces 285 MW of electricity by gasifying coal. The capital investment for the plant is $570 million, spread evenly over two years. The oeprating life of...

An integrated, combined cycle power plant produces 285 MW of electricity by gasifying coal. The capital investment for the plant is $570 million, spread evenly over two years. The oeprating life of the plant is expected to be o20 year. Additionally the plant will operate at full capacity 75% of the time (dowtime is 25% of any given year.

a. if this plant will make a profit of three cents per kilowatt-hour of electricity sold to the power grid, what is the simple payback period fo t he plant? Is it a low risk venture?

b. what is the IRR for the plant? Is it profitable?