An investor is proposing to build a $2\mathrm{.}95$ MW onshore wind farm in order to generateelectricity for saleto the grid. The total cost of the turbines and supporting infrastructureis determined to be $4\mathrm{.}7$ million. In order to protect the project from fluctuations in theenergy market, the sale price is to be contractually fixed at $0\mathrm{.}14$ kWh$-1$ for the $10-$yearlife of the facility. The cost of operation $($i$.$e$.$ management and maintenance$)$ is expectedto run at $0\mathrm{.}031$ per kWh electricity generated. The wind farm can be expected to operatewith an average annual capacity factor of $23\%$ based on wind speed data and modellingfor the proposed location.b$)$ Assuming inflation runs consistently at $2\%,$ in which year of the project can theinvestor expect to make a discounted return on their initial capital cost?$[7$ marks$]$c$)$ It is proposed that the turbines be upgraded to include an advanced blade design.This would allow operation over a greater range of wind speeds and as such,increase both the power capacity and the capacity factor of the facility to $3\mathrm{.}4$ MWand $27\%,$ respectively. However, due to added complexity and material cost, theadvanced design would also be expected to push up both the capital cost to $5\mathrm{.}6$million and the operating cost $($due to increased maintenance$)$ to $0\mathrm{.}036$ kWh$-1.$Considering the overall lifespan of the project, comment on the impact of theupgrade with respect of the overall discounted rate of return on investment.$[7$ marks$]$d$)$ What government interventions in the energy market might make investment inwind farms more attractive.