Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show steps Note: convert all the currencies to US dollars. a) What is the yearly gross revenue for a wind farm including 50 wind

please show steps
image text in transcribed
Note: convert all the currencies to US dollars. a) What is the yearly gross revenue for a wind farm including 50 wind turbines, selected in problem 2, generating electricity at a rate of $0.11/kw-hr? b) Estimate the initial capital needed for this farm excluding the cost of land acquisition and calculate the annual loan repayment including capital with a financing term of 15 years and an interest rate of 88 per annum. Assume $2 Million/MW for wind turbine commissioning. c) Estimate the annual cost of O&M (Operation & Maintenance). d) Determine the net annual revenue over the period of 15 years and comment on the profitability of this farm. e) What is the break-even point for this investment? Comment. Note: convert all the currencies to US dollars. a) What is the yearly gross revenue for a wind farm including 50 wind turbines, selected in problem 2, generating electricity at a rate of $0.11/kw-hr? b) Estimate the initial capital needed for this farm excluding the cost of land acquisition and calculate the annual loan repayment including capital with a financing term of 15 years and an interest rate of 88 per annum. Assume $2 Million/MW for wind turbine commissioning. c) Estimate the annual cost of O&M (Operation & Maintenance). d) Determine the net annual revenue over the period of 15 years and comment on the profitability of this farm. e) What is the break-even point for this investment? Comment

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

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

16th edition

978-1259277160

Students also viewed these Accounting questions