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Consider a 1 MW wind farm with a capital cost of $1,200/kW and operating costs of $5/MWh. A wind farm only generates power about 30%
Consider a 1 MW wind farm with a capital cost of $1,200/kW and operating costs of $5/MWh. A wind farm only generates power about 30% of the time given the intermittency of wind. Once operational, the wind farm has annual revenues of $100,000. The current discount rate is 10%. a) What is the fixed cost? Variable cost? b) What is the initial present value (at time = 0)? c) What is the net present value after the first year? d) What is the net present value after 5 years? e) What were the assumptions you made in these calculations? Consider a 1 MW wind farm with a capital cost of $1,200/kW and operating costs of $5/MWh. A wind farm only generates power about 30% of the time given the intermittency of wind. Once operational, the wind farm has annual revenues of $100,000. The current discount rate is 10%. a) What is the fixed cost? Variable cost? b) What is the initial present value (at time = 0)? c) What is the net present value after the first year? d) What is the net present value after 5 years? e) What were the assumptions you made in these calculations
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