Wind turbine capital investment analysis

megawatts per hour. A kilowatt$-$hour is $1,000$ watts generated per hour and a megawatt hour is $1,000$ kilowatts generated per hour.

Annual operating information related to the wind turbine project was developed as follows:

Wind capacity factor

Operating cost per wind turbine megawatt hour $,$$$10$

Variable operating, fuel, and maintenance costs per natural gas megawatt hour $$95$

Days per year

$*$A factor that measures the reduction from full capacity due to the variability of wind

a$.$ Determine the initial investment cost of the wind turbine.

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b$.$ Determine the annual cost savings from the wind turbine in replacing natural gas generation. Round to nearest whole dollar.

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c$.$ Determine the net present value of the project assuming a $15-$year life and $12\%$ minimum rate of return. $($Use the present value tables in Appendix A$.)$