2.1. Design A A field of "flat" solar panels angled to best catch the sun will yield 2.6 MW of power and will cost $87 million initially with first-year operating costs at $2 million, which will be growing $250,000 annually. It will produce electricity worth $6.9 million the first year and will increase by 10% each year thereafter. Its salvage value is estimated at $2 million Each student will use Excel to conduct the required analysis (Note that while Excel is appropriate given the class examples, the analysis can be conducted with more robust data manipulation and statistical packages like Python very easily). The spreadsheet (or code) must include all the formulas and calculations used in the analysis (you cannot just write the numbers). If the calculations and formulas are not provided the project will be awarded an automatic zero. 2. Projects The National Institute of Coal Operations (NICO) has committed to building a solar power plant as an effort to diversify and transition to renewable energies. A group of en- sincers from the University of New Orleans have offered to conduct the analysis that will evaluate the feasibility of four (4) designs for this company. They are going to evaluate these options using a present worth analysis and annual cash flow analysis. The organiza- tion currently only has enough money to execute one of the projects. NICO typically uses an interest rate of 10% and has estimated each project to have a 20-year horizon. The four proposed designs are: 2.1. Design A A field of "flat" solar panels angled to best catch the sun will yield 2.6 MW of power and will cost $87 million initially with first-year operating costs at $2 million, which will be growing $250,000 annually. It will produce electricity worth $6.9 million the first year and will increase by 10% each year thereafter. Its salvage value is estimated at $2 million. 2.2. Design B A field of mechanized solar panels rotates from side to side so that they are always positioned parallel to the sun's rays, maximizing the production of electricity. The design will yield 3.1 MW of power and will cost $90 million initially with first-year operating costs at $3.5 million, which will grow $200,000 annually. It will produce electricity worth $5.5 million the first year and will increase 13% each year thereafter. Its salvage value is estimated at $5 million 2.3. Design C This design uses a field of mirrors to focus the sun's rays onto a boiler mounted in a tower. The boiler then produces steam and generates electricity the same way a coal-fired plan operates. This system yields 3.3 MW of power and will cost 880 million initially with first-year operating costs at 83 million, which will grow $350,000 annually. It will produce cloctricity worth $8.5 million the first year and will increase 8% each year. Its salvage value is estimated at $1.5 million 2.4. Design D The last design uses the same techniques as design (with mirrors being produced with a different technology). However, this system yields 6.3 MW of power and will cost $72 million initially with first-year operating costs at $2.5 million, which will grow $150,000 annually. It will produce electricity worth $6.5 million the first year and will increase 12.5% each year. Its salvage value is estimated at $1.5 million 2.1. Design A A field of "flat" solar panels angled to best catch the sun will yield 2.6 MW of power and will cost $87 million initially with first-year operating costs at $2 million, which will be growing $250,000 annually. It will produce electricity worth $6.9 million the first year and will increase by 10% each year thereafter. Its salvage value is estimated at $2 million Each student will use Excel to conduct the required analysis (Note that while Excel is appropriate given the class examples, the analysis can be conducted with more robust data manipulation and statistical packages like Python very easily). The spreadsheet (or code) must include all the formulas and calculations used in the analysis (you cannot just write the numbers). If the calculations and formulas are not provided the project will be awarded an automatic zero. 2. Projects The National Institute of Coal Operations (NICO) has committed to building a solar power plant as an effort to diversify and transition to renewable energies. A group of en- sincers from the University of New Orleans have offered to conduct the analysis that will evaluate the feasibility of four (4) designs for this company. They are going to evaluate these options using a present worth analysis and annual cash flow analysis. The organiza- tion currently only has enough money to execute one of the projects. NICO typically uses an interest rate of 10% and has estimated each project to have a 20-year horizon. The four proposed designs are: 2.1. Design A A field of "flat" solar panels angled to best catch the sun will yield 2.6 MW of power and will cost $87 million initially with first-year operating costs at $2 million, which will be growing $250,000 annually. It will produce electricity worth $6.9 million the first year and will increase by 10% each year thereafter. Its salvage value is estimated at $2 million. 2.2. Design B A field of mechanized solar panels rotates from side to side so that they are always positioned parallel to the sun's rays, maximizing the production of electricity. The design will yield 3.1 MW of power and will cost $90 million initially with first-year operating costs at $3.5 million, which will grow $200,000 annually. It will produce electricity worth $5.5 million the first year and will increase 13% each year thereafter. Its salvage value is estimated at $5 million 2.3. Design C This design uses a field of mirrors to focus the sun's rays onto a boiler mounted in a tower. The boiler then produces steam and generates electricity the same way a coal-fired plan operates. This system yields 3.3 MW of power and will cost 880 million initially with first-year operating costs at 83 million, which will grow $350,000 annually. It will produce cloctricity worth $8.5 million the first year and will increase 8% each year. Its salvage value is estimated at $1.5 million 2.4. Design D The last design uses the same techniques as design (with mirrors being produced with a different technology). However, this system yields 6.3 MW of power and will cost $72 million initially with first-year operating costs at $2.5 million, which will grow $150,000 annually. It will produce electricity worth $6.5 million the first year and will increase 12.5% each year. Its salvage value is estimated at $1.5 million