a.Determine the initial investment cost of the wind turbine.

b.Determine the annual cost savings from the wind turbine in replacing natural gas generation. Round to nearest whole dollar.

c. Determine the net present value of the project assuming a 15-year life and 12% minimum rate of return. (Use the present value tables in Appendix

Winid turbine capital investment analysis Central Plains Power Company is considering an Investment in wind farm technology to reduce its use of natural gas, Initial installation costs are expected to tee $1,200 per kilowatt-hout of capacity. The wind turbine has a capacity of generating 2 megawatts per hour, A kilowatt-hour is 1,000 watts generated per hour and a megawatt hour is 1,000 kilowatts generated per hour. Annual operating information related to the wind turbine project was developed as follows: "A factor that measures the reduction from full capacity due to the varlabality of wind a. Determine the initial investment cost of the wind turblne. b. Determine the annual cost savings from the wind turbine in replocing natural gas generation. Round to nearest whoie dollas Cetermine the net present value of the project assuming a 15 -year life and 125 minimum tate of retum. (Use the present value tables in Appxidik A )