. . . . Calculate the internal rate of return on investment (IRR), levelized cost of electricity (LCOE), and net present value (NPV) for the following power plant that creates electricity from municipal solid waste (MSW): The power plant generates a design maximum of 100 MW of electricity The power plant takes four years to build (years 0 through 3.) The total cost of the plant is $7000/kW and the costs are spread evenly over the four years of construction. The lifetime of the power plant after construction is assumed to be 30 yrs. (4-33) The power plant has a capacity factor of 60% in the first year of operation after the four years of construction, 65% in the second year of operation, 70% in the third year, 75% in the fourth year, 80% in the fifth year, and 85% in years 6 through 30. The capacity 6 factor tells you what percentage of the year the power plant is operating at its design rated maximum power. Assume that fixed O&M costs are 5%/yr of the $7000/kW upfront capital cost, i.e. that O&M fixed costs are $350/kW per year. Assume that, after the 30 years of operation, you must decommission the power plant. The decommissioning takes place over 2 years. The total cost of decommissioning the plant is $2000/kW (i.e. $100M in year 34 and again in year 35.) Assume that you get paid to combust the municipal solid waste in the power plant. You get paid $40 per ton of MSW sent to the plant. Assume that each ton of MSW has an enthalpy content of 10 GJ/ton and that the electrical efficiency of the power plant is 25%. (i.e. you generate 2.5 GJ per ton of MSW). Assume that the sale price of electricity is $50/MWh (for NPV and IRR) and that the discount rate is 7%/yr (LCOE and NPV) Assume that there is no inflation in O&M costs, MSW tipping fee, or sale price of electricity. Use the equations below {or =IRR(cells, guess) in Excel). Answers should be in units of [% / yr], [$/MWh), and [$] N NPV = , ( R Ct). (1 + i)- t=0 N NPV = 0 = t=0 N (Re C.). (1+ IRR)-+ (LCOE Et Cz). (1+i)-+ NPV = 0 = t=0 . . . . Calculate the internal rate of return on investment (IRR), levelized cost of electricity (LCOE), and net present value (NPV) for the following power plant that creates electricity from municipal solid waste (MSW): The power plant generates a design maximum of 100 MW of electricity The power plant takes four years to build (years 0 through 3.) The total cost of the plant is $7000/kW and the costs are spread evenly over the four years of construction. The lifetime of the power plant after construction is assumed to be 30 yrs. (4-33) The power plant has a capacity factor of 60% in the first year of operation after the four years of construction, 65% in the second year of operation, 70% in the third year, 75% in the fourth year, 80% in the fifth year, and 85% in years 6 through 30. The capacity 6 factor tells you what percentage of the year the power plant is operating at its design rated maximum power. Assume that fixed O&M costs are 5%/yr of the $7000/kW upfront capital cost, i.e. that O&M fixed costs are $350/kW per year. Assume that, after the 30 years of operation, you must decommission the power plant. The decommissioning takes place over 2 years. The total cost of decommissioning the plant is $2000/kW (i.e. $100M in year 34 and again in year 35.) Assume that you get paid to combust the municipal solid waste in the power plant. You get paid $40 per ton of MSW sent to the plant. Assume that each ton of MSW has an enthalpy content of 10 GJ/ton and that the electrical efficiency of the power plant is 25%. (i.e. you generate 2.5 GJ per ton of MSW). Assume that the sale price of electricity is $50/MWh (for NPV and IRR) and that the discount rate is 7%/yr (LCOE and NPV) Assume that there is no inflation in O&M costs, MSW tipping fee, or sale price of electricity. Use the equations below {or =IRR(cells, guess) in Excel). Answers should be in units of [% / yr], [$/MWh), and [$] N NPV = , ( R Ct). (1 + i)- t=0 N NPV = 0 = t=0 N (Re C.). (1+ IRR)-+ (LCOE Et Cz). (1+i)-+ NPV = 0 = t=0