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Answer with good explanation will be upvoted. thanks For all the question below, assume that all dollar amounts have already been corrected for inflation. Thus,

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Answer with good explanation will be upvoted. thanks

For all the question below, assume that all dollar amounts have already been corrected for inflation. Thus, any change in value of money over time is due only to opportunity cost (which is reflected in the discount rate). 1. For a proposed wind turbine, the following table presents the expected cash flows over life cycle. For that type of wind turbine, it has been observed that the service life is 11 years 25% of the time, 12 years 30% of the time, 13 years 40% of the time, and 14 years 5% of the time. Round off the expected value of the service life to the nearest whole number and consider this as the analysis period. Is this a good investment? Assume 4% discount rate. Description Construction cost Maintenance cost Operating cost Rehabilitation cost Amount $20M $0.5M $2M $1M at year 5 $2M at year 10 $3M $0.5M $8M Year incurred Year 0 Annually Annually Periodic, as indicated Salvage value of recyclable parts Cost of disposing of unsalvageable parts Revenue from the sales of electricity generated by the wind turbine End of the analysis period End of the analysis period Annually

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