еВookWind turbine capital investment analysisCentral Plains Power Company is considering an investment in wind farm technology to reduce its use of natural gas. Initial installation costs are expected to be $1,200 per kilowatt-hour of capacity. The wind turbine has a capacity of generatingmegawatts per hour. A kilowatt-hour is 1,000 watts generated per hour and a megawatt hour is 1,000 kilowatts generated per hour.Annual operating information related to the wind turbine project was developed as follows:Wind capacity factor25 %*Operating cost per wind turbine megawatt hour$10Variable operating, fuel, and maintenance costs per natural gas megawatt hour$95Days per year365*A factor that measures the reduction from full capacity due to the variability of winda. Determine the initial investment cost of the wind turbine.$ 2,400,000 vb. Determine the annual cost savings from the wind turbine in replacing natural gas generation. Round to nearest whole dollar.c. Determine the net present value of the project assuming a 15-year life and 12% minimum rate of return. (Use the present value tables in Appendix A.)XFeedbackV Check My WorkPartially correctCheck My WorkPreviousNext Present Value of Ordinary Annulty of $1 per PerlodPresent Value of Ordinary Annulty of $1 per PeriodPeriods4.0%4.5%5%5.5%6%6.5%7%Periods8%9%10%11%12%13%14%0.961540.956940.943400.000900.909091.735542.486853.169873.7907910.952380.947870.938970.9345810.925930,917430.892860,884960.877191.886092.775093.629901.872672.748963.587534.380981.859411.846321.833391.820631.808021.783261.759111,712521.690051,668101,646662.723253.545954.329482.648483425802.531293.239723.889652.361152.974472.321632.913713.433082.673012.6243232.577102.443712.401833.312133.9927143.505153.465113.3872143.102453.0373554.451824.270284.212364.155684.1002053.605903.604783.517235.242144.995534.917325.582386.209796.801694.841014.766545.389295.9713065.157875.075694.622884.485924.355264.230544.111413.997553.888675.892706.595897.268795.786376.463217.107827.721736.002055.484525.032955.534825.9952575.6829775.206374.868424.712204.563764.422614.288305.334935.759026.334576.088756.656106.7327485.746645.146124.967644.796774.638867.435338.110906.515237.023586.952206.246895.537055.328255.131664.94637107.912727.537637.360097.18883106.710086.417666.144575.889235.650225.426245.216128.760489.385079.985658.528929.118587.886878.383848.852687.498677.942698.357657.138967.536086.805197.160736.495066.813695.452735.66029118.306418.092547.68904116.206525.937705.686948.618529.11708128.863258.15873126.492366.194375.917657.903788.224248.559487.486907.786156.121816.302496.46238139.682859.393578.59974137.103366.749876.423555.8423610.2228310.739558.745479.107916.961877.190876.628176.810861410.563129.898649.589659.294989.01384147.366696.002071511.1183910.3796610.037589.712259.40267158.060697.606086.142171611.6523011.2340210.8377710.4621610.105909.767769.44665168.851378.312567.823717.379166.973996.603886.2650611.7071912.1599912.5932910.8646111.2460711.607657.119637.249671712.1656711.2740710.4772610.110589.76322179.121648.543638.021557.548796.729096.3728611.6895912.0853210.8276011.1581210.4324710.734711812.6593010.05909189.371898.755638.201417.701626.839916.467421913.1339410.33560199.603608.950118.364927.839297.365786.937976.550372013.5903313.0079412.4622111.9503811.4699211.0185110.59401209.818159.128558.513567.963337469447.024756.6231311.7640812.041588.648698.771548.883228.984742114.0291613.4047212.8211512.2752411.2849810.835532110.016809.292248.075077.562007.101556.6869613.1630013.4885713.7986414.0939411.5352011.7701411.9907412.1978811.0612411.2721911.4603311.6535810.2007410.3710610.528766.742946.792066.835148.175747.644657.169517.229667.282882214.4511213.7844212.58317229.4424314.8568415.2469615.6220812.8750413.1517013.4139312.3033812.5503612.783369.580219.706617.718437.784322314.14777238.2664314.4954814.8282124248.34814252510.674789.822589.077048.421747.843147.329986.8729315.9827716.3295915.1466115.4513013.0031713.2105313.4061613.5907211.8257814.3751914.6430314.8981313.6625012.3923712.575007.371677.40856262610.809989.928979.160958.488067.895666.9060813.8981014.1214214.3331011.9867112.137116.935156.96066272710.9351610.026589.237228.547807.942552816.6630615.7428712.746482811.0510810.116139.306578.601627.984427.4412012.907499.369617.470097.495652916.9837116.0218915.1410712.277672911.1584110.198288.650118.021816.983043017.2920316.2888915.3724514.5337513.7648313.0586812.409043011.2577810.273659.426918.693798.055187.0026613.9290914.0840413.2006313.33393134590917.5884915.5928115.8026816.0025516.1929014.7239314.9042012.5318112.6465611.3498011.435008.084998.111597.518287.538307.556027.571707.585577.019887.034983116.544393110.342809.479018.7331510.4062410.464443217.8735516.78889329.526388.7686017.022869.560439.608578.800548.829323318.1476515.0750714.2302312.753793311.513898.135357.048233418.4112017.2467615.2370314.3681413.5766112.8540111.5869311.654573410,517848156567.059853518.6646117.4610116.3741915.3905514.4982513.6869612.947673510.566829.644168.855248.175507.070054019.7927718.4015817.1590916.0461215.0463014.1455313.331714011.9246110.757369.779058.951058.243787.634387.105044520.7200419.1563517.7740716.5477315.4558314.4802313.605524512.1084010.881209.862819.007918.282527.660867.123225021.4821819.7620118.2559316.9315215.7618614.7245213.800755012.2334810.961689.914819.041658.304507.675247.13266

Net present value method:- Net present value method is method which is used to compare the initial…

Wind turbine capital investment analysis Central Plains Power Company is considering an investment in wind farm technology to reduce its use of natural gas. Initial installation costs are expected to be $1,200 per kilowatt-hour of capacity. The wind turbine has a capacity of generating megawatts per hour. A kilowatt-hour is 1,000 watts generated per hour and a megawatt hour is 1,000 kilowatts generated per hour. Annual operating information related to the wind turbine project was developed as follows: Wind capacity factor 25 %* Operating cost per wind turbine megawatt hour $10 Variable operating, fuel, and maintenance costs per natural gas megawatt hour $95 Days per year 365 "A factor that measures the reduction from full capacity due to the variability of wind a. Determine the initial investment cost of the wind turbine. $ 2,400,000 b. Determine the annual cost savings from the wind turbine in replacing natural gas generation. Round to nearest whole dollar. c. Determine the net present value of the project assuming a 15-year life and 12% minimum rate of return. (Use the present value tables in Appendix A.) Feedback V Check My Work Partially correct

Wind turbine capital investment analysis Central Plains Power Company is considering an investment in wind farm technology to reduce its use of natural gas. Initial installation costs are expected to be $1,200 per kilowatt-hour of capacity. The wind turbine has a capacity of generating megawatts per hour. A kilowatt-hour is 1,000 watts generated per hour and a megawatt hour is 1,000 kilowatts generated per hour. Annual operating information related to the wind turbine project was developed as follows: Wind capacity factor 25 %* Operating cost per wind turbine megawatt hour $10 Variable operating, fuel, and maintenance costs per natural gas megawatt hour $95 Days per year 365 "A factor that measures the reduction from full capacity due to the variability of wind a. Determine the initial investment cost of the wind turbine. $ 2,400,000 b. Determine the annual cost savings from the wind turbine in replacing natural gas generation. Round to nearest whole dollar. c. Determine the net present value of the project assuming a 15-year life and 12% minimum rate of return. (Use the present value tables in Appendix A.) Feedback V Check My Work Partially correct

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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