An investment firm plans to erect 200 wind turbines at a cost of $1.69 million each. The following input information is available: • Power capacity per turbine: 1,550 kW • Project life: 20 years • Salvage value after 20 years: 0 • Annual maintenance: $16,300 per turbine • Selling price: $0.034 /kWh • Tax credit: $0.018 /kWh • MARR: 10% • Average load factor: 35% A. Calculate the IRR B. Calculate the NPV C. Will the company proceed
An investment firm plans to erect 200 wind turbines at a cost of $1.69 million each. The following input information is available: • Power capacity per turbine: 1,550 kW • Project life: 20 years • Salvage value after 20 years: 0 • Annual maintenance: $16,300 per turbine • Selling price: $0.034 /kWh • Tax credit: $0.018 /kWh • MARR: 10% • Average load factor: 35% A. Calculate the IRR B. Calculate the NPV C. Will the company proceed
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An investment firm plans to erect 200 wind turbines at a cost of $1.69 million each. The following
input information is available:
• Power capacity per turbine: 1,550 kW
• Project life: 20 years
• Salvage value after 20 years: 0
• Annual maintenance: $16,300 per turbine
• Selling price: $0.034 /kWh
• Tax credit: $0.018 /kWh
• MARR: 10%
• Average load factor: 35%
A. Calculate the
B. Calculate the
C. Will the company proceed
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