Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. consider a pv solar power project with the followi

Consider a PV solar power project with the following parameters: • Initial cost: $18M for hardware +...

60.1K

Verified Solution

Question

Finance

Consider a PV solar power project with the followingparameters:

• Initial cost: $18M for hardware + $14M for installation.

• The yearly energy produced is 24 millions kWh which will bringan income of $2.9M per year

• $0.5M per year is used for operation and maintenance.

• At the end of the 25 year time horizon, a net expenditure of$1M will be required for removal and site cleaning.

• The MARR is 7%.

a) Calculate the NPV for this investment.

b) Recalculate the NPV, this time assuming that an investmenttax credit of 20% for hardware and 10% for installation costs areavailable.

c) Calculate the IRR for this investment (with taxincentive).

d) Calculate the levelized cost of energy (with taxincentive)

Answer & Explanation Solved by verified expert
4.1 Ratings (688 Votes)
Answer a Calculation of NPV PV of net cash inflow PV of net cash outflow 2797 3218 421 M Cash flow Income per year Operating cost 29 05 24 per year PV factor for 25 years 11rn1 11rn2 116534    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A city planner wants to estimate the average monthly residential water usage in the city. He...

Statistics
Q

Cell Biology Short Answer Question: List the post-translational modifications that occur in the ER. Why are bacteria...

Biology
Q

A signal with a wavelength of 15cm goes through a car window that is 30cm wide and...

Physics
Q

Please explain why a photodetector or solar cell can be made from either a direct band...

Electrical Engineering
Q

A double convex lens with both faces of the same radius of curvature is manufactured...

Physics
Q

A vehicular tunnel has a length of 7165 feet. Use the concept of accuracy and...

Geometry
Q

Find the left critical value for 95 confidence interval for a with n 41 26...

Statistics
Q

How would inventory fit into your planned separation of duties? Please answer in your own...

Accounting
Q

Noogle Inc. issues Restricted Stock Units (RSUs) to the majority of their employees. On January...

Accounting
Q

10. Which of the following is the direct cost of manufacturing a sport boat? c....

Accounting
Q

The 2015 financial statements for the Ernst and Young companies are summarized here Ernst Young...

Accounting
Q

You must decide between buying a 1-year European Call option on a certain stock. You...

Finance