Time it takes to recoup an investment such as Wind power plant?
February 22nd, 2009 | by Michael |
Fsfa A asked:
Let 's say the $ cost of wind power plant 300 million. Provide electricity to houses. What do you think? How much will it take to recover that $ 300 million?
JAMIE
Let 's say the $ cost of wind power plant 300 million. Provide electricity to houses. What do you think? How much will it take to recover that $ 300 million?
JAMIE
2 Responses to “Time it takes to recoup an investment such as Wind power plant?”
By sharna on Feb 22, 2009 | Reply
the monitory investment will never be recouped, recouping the earths spiralling demise begins on day one.
By Nightrider on Feb 25, 2009 | Reply
You are asking this q at this forum? I am surprised.
Not unless this is idle curiosity. If you are a serious investor you obviously won’t ask it here - but hire some experts to do that job.
Now, do the math. $300 Mill. as fixed cost. Operating cost will at least be $1 Mill a year that includes salary, admin, maintenance, land cost electricity distribution cost etc…
How many homes this windfarm will serve?. That’s the key. Each home on an average consumes 1500 Kwh; at about say, 12 cents a Kwh, that is, $200 per month. ie., $2500 to $3000 per year.
Then, you work backwards: How many homes can YOU serve with your wind farm?. What is the generating capacity.? Higher the capacity, more investment is the result and more running cost.
So, it is difficult to answer until we know how many Kwh can your plant produce for how many homes.
Then, you will know the profit you can make after all the disbursements. If you repay $300Mill over 20 to 25 years with interest, then your profit must be…..xxxxx….dollars. So, you see, it is not that simple to answer.
But wait. Government will kick in quite a bit of money becauise windfarms are environment friendly, no pollution. So, that’s where you go first with hat in your hand.