Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

19. Find the IRR of the following investment in a 15-MWp PV system which solar radiation data are available): planned for Tampa, Florida (you may

image text in transcribed

19. Find the IRR of the following investment in a 15-MWp PV system which solar radiation data are available): planned for Tampa, Florida (you may choose another location for Total initial cost of the system: $1.7 M/MWp Annual O&M costs: 2% of the initial costs Equity investment: 30% of the initial costs Debt financed by a bank: 70% of the initial costs at 10%/year Annual reduction in performance: 0.2%/year Electricity tariff for the plant: $0.30/kWh for the first 20 years Salvage value after 20 years: 20% of the initial costs 20. The investor in Problem 19 is able to get a preferential debt rate from a government-backed bank at a rate of 4%/year. What is the new IRR

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

Describe how to maintain training and development records.

Answered: 1 week ago