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1 Answers
1. Three-part form
Fixed cost + Semi fixed cost + Running cost
= Rs ( a + b kW + c kWh)
2. Two-part form
= Rs( b kW + c kWh)
Annual depreciation cost= (P-S)/n
P: Initial cost of equipment
n: Useful life of equipment in years
S: Scrap or salvage value after the useful life of the plant