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need help SOLVING for B & C 5. An electric plant that produces 10 x 10 kWh/year has an annual investment expenditure of $43.5 x
need help SOLVING for B & C
5. An electric plant that produces 10 x 10 kWh/year has an annual investment expenditure of $43.5 x 10/year for an expected lifetime of 25 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 $20 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 any? 5. An electric plant that produces 10 x 10 kWh/year has an annual investment expenditure of $43.5 x 10/year for an expected lifetime of 25 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 $20 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
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