Power Plants - red or green territory

Guest · Post by **Guest** » 20.07.2008, 07:50

I have read GoldenEye's "Advice of the Week" regarding where to build particular buildings, but the comments about Power Plants leaves me confused.

So I am turning to the community to advise me on the pros and cons of building in each territory.

Guest · Post by **Guest** » 20.07.2008, 08:56

I would say build in red, because on long term notice the profits are remarkebly higher because of the 25% production increasse.

For example (according to a market price of 0.20, the current in realm 1):

Power plant green produces 1.000.000 for 0.01 kosts: 10.000, market vallue: 200.000 profit: 190.000

Power plant in red produces 25% more = 1.250.000 cost 0.03 = 37.500, market vallue 250.000 profit: 212.500

On long term notice a powerplant in red gives you more profit of course the building cost are higher as well so you have to make a bigger investment to begin with.

Guest · Post by **Guest** » 20.07.2008, 09:03

Thank you for your answer. That has cleared it up for me. Now I save my caps to build.

Guest · Post by **Guest** » 20.07.2008, 13:30

I'd also like to tell you , that when the market price drops under 0.14 , it's better to have green power plants =D

Guest · Post by **Guest** » 20.07.2008, 15:44

@moontje87 Thanks for giving me the calculation to work out potential profit.

@davidfranses Thanks for the other view re if price drops below .14c it is better to build in green.

In R2 power seems to mainly sell between .07c and .10c.

Therefore it would seem better to build in green, if my calculations are correct.

Guest · Post by **Guest** » 23.07.2008, 00:02

You will be using or selling power for months and months from this plant. In view of this, the initial investment amortizes to absolutely nothing.

In 4 months you can be smug and tell yourself how smart you were to build where it produces 25% more.

Guest · Post by **Guest** » 23.07.2008, 00:02

The stupid market in realm 2 is sellin gpower for .07-.08..... i seriously think we should bring the price back up because power sellers are selling to low and were making less than half of what we were a few months ago...we should sell high until everyone stop selling lower and eventually people will catch up with the trend.

Guest · Post by **Guest** » 24.07.2008, 04:04

Ricimer wrote:You will be using or selling power for months and months from this plant. In view of this, the initial investment amortizes to absolutely nothing.

In 4 months you can be smug and tell yourself how smart you were to build where it produces 25% more.

Well if that was the only consideration then I would agree.

However, the cost difference: 0.01 for green or 0.03 for red, that never goes away.

Completely ignoring the higher building cost it's an easy calculation like this:

you're getting 25% more with red over green. So you can't give up more than 25% with red over green.

At 0.11c you get 0.08 instead of 0.10 10/8 = 25%

So even if you completely ignore build cost, you have to be selling at 0.11

Guest · Post by **Guest** » 24.07.2008, 05:52

Thank you Knolls for that detailed calculation - that will have cleared up the choice for many players.

I became a little lost with the algebra - it's been many many years since I tried to learn that at school.

But I believe your figures.

You have saved me from a costly mistake though, as I was about to build another power plant in Red and make my own comparisons with the one I already have producing in Green. I will just have to become very patient waiting for goods and expansions to be finished.

It was rather obvious to me though, that if the cost in R2 was 0.01 compared with 0.03 and it was only selling for between 0.06 and 0.08, there was much more profit from building in Green.

Once again, thank you.