An electric plant that produces 11 x 10⁹ kWh/year has an annual investment expenditure of $44.5 x 106 /year for an expected project lifetime of 30 years, with no remaining salvage value. The capital cost of the plant is repaid at 5% discount or interest rate. Total annual operating cost at the plant is $21 x 106/year, and annual return to investors at 5% of the operating cost plus capital repayment cost. (a) What is the levelized cost of electricity in $/Wh? (b) If they charge at this cost and assuming no other cost, estimate when will they reach breakeven point? (c) If they charge at this cost and assuming no other cost, estimate the return on investment, if any?

Introductory Circuit Analysis (13th Edition)
13th Edition
ISBN:9780133923605
Author:Robert L. Boylestad
Publisher:Robert L. Boylestad
Chapter1: Introduction
Section: Chapter Questions
Problem 1P: Visit your local library (at school or home) and describe the extent to which it provides literature...
icon
Related questions
icon
Concept explainers
Question

Solve it correctly please. I will rate accordingly 

An electric plant that produces 11 x 10°
kWh/year has an annual investment expenditure of
$44.5 x 106 /year for an expected project lifetime of
30 years, with no remaining salvage value. The capital
cost of the plant is repaid at 5% discount or interest
rate. Total annual operating cost at the plant is $21 x
106/year, and annual return to investors at 5% of the
operating cost plus capital repayment cost.
(a) What is the levelized cost of electricity in
$/Wh?
(b) If they charge at this cost and assuming no
other cost, estimate when will they reach
breakeven point?
(c) If they charge at this cost and assuming no
other cost, estimate the return on investment, if
any?
Transcribed Image Text:An electric plant that produces 11 x 10° kWh/year has an annual investment expenditure of $44.5 x 106 /year for an expected project lifetime of 30 years, with no remaining salvage value. The capital cost of the plant is repaid at 5% discount or interest rate. Total annual operating cost at the plant is $21 x 106/year, and annual return to investors at 5% of the operating cost plus capital repayment cost. (a) What is the levelized cost of electricity in $/Wh? (b) If they charge at this cost and assuming no other cost, estimate when will they reach breakeven point? (c) If they charge at this cost and assuming no other cost, estimate the return on investment, if any?
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Load flow analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, electrical-engineering and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Introductory Circuit Analysis (13th Edition)
Introductory Circuit Analysis (13th Edition)
Electrical Engineering
ISBN:
9780133923605
Author:
Robert L. Boylestad
Publisher:
PEARSON
Delmar's Standard Textbook Of Electricity
Delmar's Standard Textbook Of Electricity
Electrical Engineering
ISBN:
9781337900348
Author:
Stephen L. Herman
Publisher:
Cengage Learning
Programmable Logic Controllers
Programmable Logic Controllers
Electrical Engineering
ISBN:
9780073373843
Author:
Frank D. Petruzella
Publisher:
McGraw-Hill Education
Fundamentals of Electric Circuits
Fundamentals of Electric Circuits
Electrical Engineering
ISBN:
9780078028229
Author:
Charles K Alexander, Matthew Sadiku
Publisher:
McGraw-Hill Education
Electric Circuits. (11th Edition)
Electric Circuits. (11th Edition)
Electrical Engineering
ISBN:
9780134746968
Author:
James W. Nilsson, Susan Riedel
Publisher:
PEARSON
Engineering Electromagnetics
Engineering Electromagnetics
Electrical Engineering
ISBN:
9780078028151
Author:
Hayt, William H. (william Hart), Jr, BUCK, John A.
Publisher:
Mcgraw-hill Education,