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XY Company plans to construct a photovoltaic (PV) plant to deliver power to a residential community. The capital cost of the plant is $ 8
XY Company plans to construct a photovoltaic (PV) plant to deliver power to a residential community. The capital cost of the plant is $ 8 million, and the expected lifetime is 25 years. The salvage value is estimated to cover the cost of dismantling the plant. The company manager anticipates an annual energy consumption of 30 million Kwh. Suppose that the operational cost of the plant is $ 500000 and it increases by $ 20000 per year. Compute the levelized cost of energy for the PV plant. (Note that the discount rate is 8%, compounded annually
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