The turbine has a 20-year lifewith a salvage value of 20000


A wind turbine rated at 350 kW costs $650,000 which includes the purchase and installation costs. The turbine has a swept area of 1500 m2. It is installed in a location withyear-around average power density available in the wind of 320 W/m2, and on the averageconverts 25% of the energy into electricity. The electricity is sold to the grid at $0.05/kWh,paid at the location of the turbine (i.e. no transmission cost). The turbine has a 20-year lifewith a salvage value of $20,000. The discount rate is 8%. Calculate the net present value of this investment (NPV)

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Financial Management: The turbine has a 20-year lifewith a salvage value of 20000
Reference No:- TGS02325922

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