What is the annual amount of electricity

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A production facility is looking at installing a wind turbine which will cost $175,000 at time zero. The wind turbine will allow them to have free electricity and they know they’ll use all the electricity it provides. The wind turbine will have a 6 year life, annual maintenance contract cost of $5,000, and an overhaul in year 3 of $18,000. What is the annual amount of electricity (Kilowatt hours) that they will need to breakeven with this project at a MARR of 15%? Note, they currently pay $0.086 per KWH.

Reference no: EM13770992

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