The wind$-$farm will consist of $10$ wind turbines, each with a capacity of $9\mathrm{.}5$ MW together providing up to $95$ MW at peak generation. The load factor for the installation is estimated to be $0\mathrm{.}3(30\%).$ Total annual costs $($operating $+$ maintenance$)$ are $75,000$ per MW of installed capacity. The capital cost is $250$ million.

Prepare a cash flow table and use this to calculate the project$$s Net Present Value $($NPV$)$ using a $15\%$ discount rate if the income from energy generation is $35$ pence per kWhr and the wind$-$farm has a lifetime of $21$ years. You may ignore tax and capital allowance. Your accountant has advised that future costs should NOT be inflated year on year as this is factored into the specified discount rate. Comment on whether or not the project should be approved based on the calculated NPV$.$

Try a discount rate of $5\%$ and $50\%$ and note the impact on NPV$.$