Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a wind energy project that produces 4 9 9 G W h y r and is able to sell this at a cost of

Consider a wind energy project that produces 499GWhyr and is able to sell this at a cost
of $0.13kWh. The project will also receive income in this year from the PTC, at a value of
$0.025kWh. The annual operating expenses come out to be $0.013kWh plus a fixed
amount of $188 thousand. The project is able to depreciate 11.52% of its total installed cost
(which was $369 million) in this year, and it can write off the interest paid on the loan, which
has a value of $15.4 million this year. The principal paid on debt is $19.8 million and the tax
rate for the company which owns the project is 35%. What is the total taxable income (TI) in
millions of dollars? Round answer to two decimal places (answer may be negative).
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Short Term Financial Management

Authors: Ned C Hill

1st Edition

0023548207, 978-0023548208

More Books

Students also viewed these Finance questions