There are 5 plants for this data:

Natural gas, Coal, Nuclear, Solar, and Wind

Construction project costs and lengths also vary greatly. The $5.5 billion cost of a nuclear plant dwarfs the other alternatives and also has the longest construction time (4 years). A coal plant is less expensive to build (costing roughly one-third as much--$1.8 billion), but takes almost as long to build (3 years). Although much less expensive to construct ($650 million), a natural gas plant still requires 2.5 years for construction. Both of the renewable energy alternatives have short construction times (1 year); the costs differ significantly. The solar plant cost of $300 million is 20 times the cost of a wind plant ($15 million).

The cost of input materials also significantly affects the expected yearly cash flows from each production source. The cash inflows will begin in the year following the end of construction and will remain constant for the life of the asset. Given the long-lived nature of uranium, the nuclear plants expected cash flow of $680 million per year is significantly higher than the other alternatives. The relatively high cost of production inputs used in the coal and natural gas plants reduces the expected cash flows from each of these plants to $97 million and $85 million, respectively. The expected yearly cash flow from the wind plant is $2 million; the yearly cash flow from the solar plant is $3 million.

Nuclear and coal plants 30 years

Natural gas, wind and solar plants 20 years

a)What is the appropriate cost of capital. (WACC)

b)Fill out the remaining plants information, the 1^st one is filled out for you.

calculate the NPV and IRR after the top part is done

Production Plant Cash Flows Year Notural Gas Plant Cash Flows lin Millions S Nuclear Plant Cash Wind Plant Cash Flows (In Millions f Plant Cash Flows (In Millions Coal Plant Cash Flows (in Millions S (650) 42.5 85 10 12 13 15 16 17 25 26 28 30 WACC MUST ENTER WACC for NPV computations in spreadsheet below to calculate