1) Consider a wind energy project which produces 358 GWh/yr and is able to sell this at the cost of $0.14/kWh. Project will also receive income in this year from PTC, at the value of $0.022/kWh. Annual operating expenses come out to be= $0.009/kWh plus a fixed amount of= $243 thousand. The project is able to depreciate 11.52% of its total installed cost (which was $400 million) in this year, and it can prepare off interest paid on loan, which has the value of= $29.12 million this year. Principal paid is= $9.68 million and tax rate for company which owns project is 35%.

1) Determine the Depreciation (D1) in millions of dollars?

2) Determine the total depreciation and interest (DA) deduction in millions of dollars?

3) prepare down the total operating expenses (OE) in millions of dollars?

4) Determine the total revenue(RA) in millions of dollars?

5) Determine the total taxable income (TI) in millions of dollars?

6) Find out the total tax owed (TA) in millions of dollars?

7) Compute the net annual income for this project (NIA) in millions of dollars?

8) Determine the after tax cash flow for this year (CF) in millions of dollars?