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Assume that wind turbines are designed such that irreparable damage should occur only during local storms, which occur, on average, once per hundred years. Calculate
Assume that wind turbines are designed such that irreparable damage should occur only during local storms, which occur, on average, once per hundred years. Calculate the annual insurance fee, $/year, in constant dollars for a unit having an initial cost of $300,000 if the worldwide insurance investment pool for wind farms earns a net real inflation-free rate of return of 5%/year compounded continuously.
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