Answered step by step
Verified Expert Solution
Question
1 Approved Answer
give the assumptions too 5. (5 pts) An electric plant that produces 11 x 10 kWh/year has an annual investment expenditure of $44.5 x 106
give the assumptions too
5. (5 pts) An electric plant that produces 11 x 10 kWh/year has an annual investment expenditure of $44.5 x 106 /year for an expected project lifetime of 30 years, with no remaining salvage value. The capital cost of the plant is repaid at 5% discount or interest rate. Total annual operating cost at the plant is $21 x 10/year, and annual return to investors at 5% of the operating cost plus capital repayment cost. (a) What is the levelized cost of electricity in $/Wh? (b) If they charge at this cost and assuming no other cost, estimate when will they reach breakeven point? (c) If they charge at this cost and assuming no other cost, estimate the return on investment, if anyStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started