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)
