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Question: Consider a wind energy project that produces 399 GWh/yr and is able to sell this at a cost of $0.1/kWh. The project will also receive income in this year from the PTC, at a value of $0.023/kWh. The annual operating expenses come out to be $.014/kWh plus a fixed amount of $216 (thousand). The project is able to depreciate 11.52% of its TIC (which was $300 Million) in this year, and it can write off the interest paid on the loan, which has a value of $10.92 Million this year. The principal paid on the loan was $4.08 Million and the tax rate for the company which owns the project is 35%. Round all answers to two decimal places in Millions of dollars. (some answers may be negative).

1. What is the Depreciation (D1)?

2. What is the total depreciation and interest (DA) deduction?

3. What are the total operating expenses (OE)?

4. What is the total revenue (RA)?

5. What is the total taxable income (TI)?

6. What is the total Tax owed (TA)?

7. What is the net annual income (NIA) for this project?

8. What is it he Net Cash Flow for this project (NCF)?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92608064

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