Question: 1 1 . A data center needs to purchase 3 MWh of electricity per month. The risk - adjusted expected monthly growth factor for the

11. A data center needs to purchase 3 MWh of electricity per month. The risk-adjusted expected monthly
growth factor for the spot price of electricity is K=1. The risk-free interest rate is 1% per year. The
current spot price of electricity is $20//MWh. Use the "annuity" approach to estimate the cost of the
firm's electricity purchases starting next month and finishing N months from now for values of N equal
to 12 and 24.
1 1 . A data center needs to purchase 3 MWh of

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