1          Arenewable energy electricity supply technology has the followingcharacteristics:

Capital cost ($)	Annual operating cost ($)	Lifetime (years)	Salvage value ($)	Annual electricity supplied (MWh)
380 000	29 500	25	42 000	380

1. If the owner can sell theelectricity at 30 c/kWh,
2. 1. calculate the lifecycle cost of the technology over anassessment period of 25 years at a real discount rate of5%                                
   2. Calculate the average unit cost of the power in present valueterms (in cents/kWh) supplied by the technology over its lifetimeat this real discount rate.
3. 1. What is the Levelised Cost of Electricity (LCOE) (in cents/kWh)for this case, with a salvage value of zero, and calculated usingmethod 1 (that is, finding the constant price to charge for theelectricity that gives a zero NPV at a real discount rate of 5%over 25 years)?
   2. Calculate this LCOE (add annualised capital cost to the annualoperating cost, and divide by annual electricity supplied), andshow that this gives the same value as method 1. Give values forthe annualised capital cost and annual operating cost in youranswer. (The annualised capital cost formula is the inverse of theUniform Series Present Worth Factor formula.)

1. Using the figures in the table above as a baseline, work out anexpression for Present Worth with real discount rate, assessmentperiod, salvage value, and electricity price as independentvariables. Then changing just one variable at a time (other thingsbeing kept equal) plot graphs of Present Worth versus each of thesevariables. Use a range of assessment periods up to the lifetime ofthe technology. Explore the effects of both positive and negativesalvage values.

Note: to simplify the calculation ofpresent worth, for assessment periods less than the lifetime,neglect the residual value of the technology, and assume salvagevalues are only incurred at the end of the lifetime of thetechnology.

I would appreciate if you can solveany part of this question.