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Interview Question for Project Analyst at Deloitte:
Aug 11, 2010

How would you valuate a power plant?


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Jan 11, 2011

by Randy:

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.
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