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5. (5 pts) An electric plant that produces 11 x 109 kWh/year has an annual investment expenditure of $44.5 x 10 /year for an expected
5. (5 pts) An electric plant that produces 11 x 109 kWh/year has an annual investment expenditure of $44.5 x 10 /year for an expected project lifetime of 30 years, with no remaining salvage value. The capital cost of the plant is repaid at 5% discount or interest rate. Total annual operating cost at the plant is $21 x 10/year, and annual return to investors at 5% of the operating cost plus capital repayment cost. (a) What is the levelized cost of electricity in $/Wh? (b) If they charge at this cost and assuming no other cost, estimate when will they reach breakeven point? (c) If they charge at this cost and assuming no other cost, estimate the return on investment, if any
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