Set up a cash flow spreadsheet using the following parameters. Capital costs $2500/KW. 10% discount rate, 20 year life, capacity factor of 30% and O&M costs of $30/KW. No fuel costs and ignore taxes. Calculate what you will need to sell electricity for to obtain a zero NPV. What does a zero NPV mean and what happens at this point? How does this relate the levelized cost of energy?

Answer rating: 100% (QA)

Assume Installed Capacity 1KW Capacity Factor 30 03 ... View the full answer