Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2) Set up a cash flow spreadsheet using the following parameters. Capital costs $2500/KW. 10% discount rate, 20 year life, capacity factor of 30% and
2) Set up a cash flow spreadsheet using the following parameters. Capital costs $2500/KW. 10% discount rate, 20 year life, capacity factor of 30% and O&M costs of $30/KW. No fuel costs and ignore taxes. Calculate what you will need to sell electricity for to obtain a zero NPV. What does a zero NPV mean and what happens at this point? How does this relate the levelized cost of energy?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started