1 Wind energy project that will cost $3,000,000 to build and will generate an average of 500,000 kWh per year for 20 years. The project has an estimated capacity factor of 40%, which means it will generate power 40% of the time. The estimated O&M costs for the project are $50,000 per year, and the cost of capital is 6%. Natural gas generator that will cost $500,000 to purchase and will generate an average of 100,000 kWh per year for 10 years. The fuel cost for the generator is estimated to be $0.10 per kWh, and the maintenance costs are estimated to be $5,000 per year. The cost of capital is 6%. A- If the above projects are proposed, which of them should be selected based on LCOE ($/kWh). B- If gas generator electricity has lower LCOE, how much carbon tax ($/Ton of CO2) needs to be added so that renewable energy project is more feasible (lower LCOE) Natural gas produces 0.185 kg CO2 per kWh Question 2 Wind energy project that will cost $250,000 to build and will generate cash revenues of $35,000 per year for 10 years. A- Calculate the net present value (NPV) for the project using discount rates of 2%, 4%, 6%, 8%, 10% and 12%. B- Plot discount rate vs. NPV for the given discount rates C-Find the maximum discount rate for which the project can be accepted. Use MS Excel to show your calculations for both questions