Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

Question Question 6 (5 points): Question Question 6 (5 points): Entergy purchased Vermont Yankee in 2002 for $180 million, which we will useas the capital cost or “principal” of the plant. The capacity of the plant is 600,000kilowatts (kW), or 600 megawatts (MW). Calculate the levelized cost of energyfor Vermont Yankee over its initial period of ownership by Entergy, from 2002through 2013. In your analysis, please treat 2002 as “Year 0” and 2003 as “Year1” (and so on). Assume also that Entergy uses an internal discount rate of 12% peryear. The variable cost of operating a nuclear power plant in the U.S. in 2002 wasapproximately $20 per MWh. You should assume continuous compounding inthis problem. Assume that Vermont Yankee produced 4,920,000 MWh per yearevery year from 2002 through 2013. Question 7 (8 points): Vermont Yankee was under contract to sell half of the plant’s output to Vermontutilities for $45 per MWh. The remainder of the plant’s output is sold to ISO-NewEngland (ISO-NE) at the market price for Vermont. This price has averaged $57per MWh since 2002. Thus, the annual revenues for Vermont Yankee are givenby the equation:Revenuet = (45 ×Qt/2) + (ISO-NE Price ×Qt/2) = $51/MWh ×QtWhere the subscript t indicates year t; thus Qt is total electricity production atVermont Yankee (in MWh) in year t.Calculate annual revenues for Vermont Yankee and the net present value of theplant over the period 2002 to 2013. Can you calculate the internal rate of returnVermont Yankee in 2002 for $180 million, which we will useas the capital cost or “principal” of the plant. The capacity of the plant is 600,000kilowatts (kW), or 600 megawatts (MW). Calculate the levelized cost of energyfor Vermont Yankee over its initial period of ownership by Entergy, from 2002through 2013. In your analysis, please treat 2002 as “Year 0” and 2003 as “Year1” (and so on). Assume also that Entergy uses an internal discount rate of 12% peryear. The variable cost of operating a nuclear power plant in the U.S. in 2002 wasapproximately $20 per MWh. You should assume continuous compounding inthis problem. Assume that Vermont Yankee produced 4,920,000 MWh per yearevery year from 2002 through 2013. Question 7 (8 points): Vermont Yankee was under contract to sell half of the plant’s output to Vermontutilities for $45 per MWh. The remainder of the plant’s output is sold to ISO-NewEngland (ISO-NE) at the market price for Vermont. This price has averaged $57per MWh since 2002. Thus, the annual revenues for Vermont Yankee are givenby the equation:Revenuet = (45 ×Qt/2) + (ISO-NE Price ×Qt/2) = $51/MWh ×QtWhere the subscript t indicates year t; thus Qt is total electricity production atVermont Yankee (in MWh) in year t.Calculate annual revenues for Vermont Yankee and the net present value of theplant over the period 2002 to 2013. Can you calculate the internal rate of return

/in /by

Question

Question 6 (5 points): Entergy purchased Vermont Yankee in 2002 for $180 million, which we will useas the capital

cost or “principal” of the plant. The capacity of the plant is 600,000kilowatts (kW), or 600 megawatts (MW). Calculate the levelized cost of energyfor Vermont Yankee over its initial period of ownership by Entergy, from 2002through 2013. In your analysis, please treat 2002 as “Year 0” and 2003 as “Year1” (and so on). Assume also that Entergy uses an internal discount rate of 12% peryear. The variable cost of operating a nuclear power plant in the U.S. in 2002 wasapproximately $20 per MWh. You should assume continuous compounding inthis problem. Assume that Vermont Yankee produced 4,920,000 MWh per yearevery year from 2002 through 2013.

Question 7 (8 points): Vermont Yankee was under contract to sell half of the plant’s output to Vermontutilities for $45 per MWh. The remainder of the plant’s output is sold to ISO-NewEngland (ISO-NE) at the market price for Vermont. This price has averaged $57per MWh since 2002. Thus, the annual revenues for Vermont Yankee are givenby the equation:Revenuet = (45 ×Qt/2) + (ISO-NE Price ×Qt/2) = $51/MWh ×QtWhere the subscript t indicates year t; thus Qt is total electricity production atVermont Yankee (in MWh) in year t.Calculate annual revenues for Vermont Yankee and the net present value of theplant over the period 2002 to 2013. Can you calculate the internal rate of return

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"