Consider a wind energy project that produces 574 GWh/yr and is able to sell this at a cost of $0.13/kWh. The project will also receive income in this year from the PTC, at a value of $0.025/kWh. The annual operating expenses come out to be $0.008/kWh plus a fixed amount of $202 thousand. The project is able to depreciate 11.52% of its total installed cost (which was $361 million) in this year, and it can write off the interest paid on the loan, which has a value of $15.3 million this year. The principal paid on debt is $19.6 million and the tax rate for the company which owns the project is 35%.

What is the total taxable income (TI) in millions of dollars? Round answer to two decimal places (answer may be negative).

Answer rating: 100% (QA)

To calculate the total taxable income TI for the wind energy project we need to take ... View the full answer