ectricity more than proportionately to the increase in costs. A 1 megawatt turbine costs $2.6 million, with the remaining equipment costs unchanged, for a total required investment of $4.1 million to power approximately 760 households. Electricity revenue over 15 years rises to $7.2 million in discounted present value. What conv
ectricity more than proportionately to the increase in costs. A 1 megawatt turbine costs $2.6 million, with the remaining equipment costs unchanged, for a total required investment of $4.1 million to power approximately 760 households. Electricity revenue over 15 years rises to $7.2 million in discounted present value. What conv
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Larger-scale turbines increase the electricity more than proportionately to the
increase in costs. A 1 megawatt turbine costs $2.6 million, with the remaining
equipment costs unchanged, for a total required investment of $4.1 million to
power approximately 760 households. Electricity revenue over 15 years rises to
$7.2 million in discounted present value. What conversion factor allows cost recovery
of this larger-scale turbine?
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