A homeowner installs a wind turbine at a system cost of 2000

A homeowner installs a wind turbine at a system cost of $20,000 with the anticipation of a payback period of 10 years. The turbine is installed at a location where the wind has a constant velocity of 6 m/s. A neighboring homeowner installs an identical wind turbine but invests an additional $10,000 in a taller tower to move the turbine to an altitude where the wind velocity is a constant 8 m/s. Is the investment in a taller tower a wise choice from a financial standpoint? Select one: more than the $80,000 total investment for the turbine with the higher tower. more than the $30,000 total investment for the turbine with the higher tower. more than the $100,000 total investment for the turbine with the higher tower. more than the $60,000 total investment for the turbine with the higher tower.

Solution

B.

More than $30,000 total investment for the turbine with the higher tower will be a wise choice from a financial standpoint. Because as we choose the long tower then turbine\'s blades will face more wing velocity, it will increase the output.