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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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