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Find the levelized cost per kwh of power

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Question - A wind machine is rated at 3kW and requires an installation cost of $5,000. The capacity factor for the system is 22%. A bank offers a 10-year loan at an interest rate of 10% for the unit which has a service life of 20 years. The discount rate is 10% and the O&M costs are 2% of the installation costs. Find the levelized cost per kWh of power assuming: (a) Inflation rate of 11%, and, (b) Inflation rate of 0%.

Reference no: EM133223942

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