Question

A solar energy project is expected to have capital costs of $995,000, average yearly operating costs of $175,000, and a lifetime of 25 years. If the total production during the lifetime of the project is 89,500,000 kWh, what is the levelized cost of energy (LCOE)? (LCOE = capital costs + average yearly operating costs x number of project years / total production) (I am getting 0.327 which is not an option.) A. $0.60 per kWh B. $0.77 per kWh C. $0.06 per kWh D. $0.07 per kWh

Name: a solar energy project is expected to have capital costs of 995000 average yearly operating costs of 175000 and a lifetime of 25 years if the total production during the lifetime of the proj 01332
Uploaded: 2022-04-20T17:50:42-08:00
Duration: 35 s
Channel: Moses Obasola
Description: a solar energy project is expected to have capital costs of 995000 average yearly operating costs of 175000 and a lifetime of 25 years if the total production during the lifetime of the proj 01332

          A solar energy project is expected to have capital costs of $995,000, average yearly operating costs of $175,000, and a lifetime of 25 years. If the total production during the lifetime of the project is 89,500,000 kWh, what is the levelized cost of energy (LCOE)? (LCOE = capital costs + average yearly operating costs x number of project years / total production) (I am getting 0.327 which is not an option.)

A. $0.60 per kWh
B. $0.77 per kWh
C. $0.06 per kWh
D. $0.07 per kWh

Added by Cody F.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Moses Obasola

04/20/2022

Step 1

Total cost = Capital costs + (Average yearly operating costs x number of project years) Total cost = $995,000 + ($175,000 x 25) Total cost = $995,000 + $4,375,000 Total cost = $5,370,000 Show more…

Show all steps

Thanks for your feedback!

A solar energy project is expected to have capital costs of $995,000, average yearly operating costs of $175,000, and a lifetime of 25 years. If the total production during the lifetime of the project is 89,500,000 kWh, what is the levelized cost of energy (LCOE)? (LCOE = capital costs + average yearly operating costs x number of project years / total production) (I am getting 0.327 which is not an option.) A. $0.60 per kWh B. $0.77 per kWh C. $0.06 per kWh D. $0.07 per kWh