Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. (20%) A certain wind turbine is rated at 5 MW and has an installed cost of $6,000,000. The capacity factor is 0.38. The turbine

image text in transcribed
3. (20%) A certain wind turbine is rated at 5 MW and has an installed cost of $6,000,000. The capacity factor is 0.38. The turbine is paid for with a down payment of 1/ 10 of the installed cost and a loan. The loan interest rate, b, is 8% and the period of the loan, N, is 15 years. The economic lifetime of the turbine, L, is to be 20 years, the inflation rate is 4% and the discount rate, r, is 5 %. The O&M cost is 1% of the initial cost each year, increasing at the inflation rate $0.10/kWh? 2) Find i) the net present value of all the costs, in S, and ii) the levelized cost of producing the energy, S per kWh

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance

Authors: Eddie McLaney

11th Edition

1292134402, 9781292134406

More Books

Students also viewed these Finance questions

Question

Identify three ways in which rationalism differs from empiricism.

Answered: 1 week ago