Use the LCOE Levelized Cost of Energy to calculate the following: An offshore 1 MW wind turbine costs $2,000 per kW to construct. It produces 4,000 MWh of electricity each year. The cost of capital is 20% (high-risk project). Operations cost is $10 per MWh (a lot of maintenance due to salt and wear-and-tear from ocean). Project lifetime is 10 years. A) If a nuclear plant has a levelized cost of $100/MWh, which do you recommend constructing? B) Which do you recommend if the government offers a program that pays 30% of construction costs? Include your spreadsheet if you use Excel or provide enough information for me to understand how you did your calculations if you do not use a spreadsheet
Use the LCOE Levelized Cost of Energy to calculate the following: An offshore 1 MW wind turbine costs $2,000 per kW to construct. It produces 4,000 MWh of electricity each year. The cost of capital is 20% (high-risk project). Operations cost is $10 per MWh (a lot of maintenance due to salt and wear-and-tear from ocean). Project lifetime is 10 years. A) If a nuclear plant has a levelized cost of $100/MWh, which do you recommend constructing? B) Which do you recommend if the government offers a program that pays 30% of construction costs? Include your spreadsheet if you use Excel or provide enough information for me to understand how you did your calculations if you do not use a spreadsheet
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter11: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 8P: The Rodriguez Company is considering an average-risk investment in a mineral water spring project...
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Use the LCOE Levelized Cost of Energy to calculate the following:
An offshore 1 MW wind turbine costs $2,000 per kW to construct. It produces 4,000 MWh of electricity each year. The cost of capital is 20% (high-risk project). Operations cost is $10 per MWh (a lot of maintenance due to salt and wear-and-tear from ocean). Project lifetime is 10 years. A) If a nuclear plant has a levelized cost of $100/MWh, which do you recommend constructing? B) Which do you recommend if the government offers a program that pays 30% of construction costs? Include your spreadsheet if you use Excel or provide enough information for me to understand how you did your calculations if you do not use a spreadsheet.
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