Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 (30 p). You need to evaluate the financial feasibility of a small photovoltaic system project for your customer. The system is rated at 5

image text in transcribed
4 (30 p). You need to evaluate the financial feasibility of a small photovoltaic system project for your customer. The system is rated at 5 kW. cost $18,000 and you expect it to operate with capacity factor of 0.4 for 20 years. If the cost of electricity is 100kwh and your discount rate is 9%, answer the following: a) How much money you will save per year on electrical bill?! b) What is the NPV? c) Do you need a tax incentive for your project be profitable? If yes, how much? d) What is NPV and IRR if the tax incentive is $4,000? e) What is the annualized price of electricity from the PV system (without tax incentive) and how it compares with the current utility price? 1) What is the price of electricity from PV if instead of paying cash, you take a 20 year loan at 9%? 4 (30 p). You need to evaluate the financial feasibility of a small photovoltaic system project for your customer. The system is rated at 5 kW. cost $18,000 and you expect it to operate with capacity factor of 0.4 for 20 years. If the cost of electricity is 100kwh and your discount rate is 9%, answer the following: a) How much money you will save per year on electrical bill?! b) What is the NPV? c) Do you need a tax incentive for your project be profitable? If yes, how much? d) What is NPV and IRR if the tax incentive is $4,000? e) What is the annualized price of electricity from the PV system (without tax incentive) and how it compares with the current utility price? 1) What is the price of electricity from PV if instead of paying cash, you take a 20 year loan at 9%

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

Step: 3

blur-text-image

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

The Handbook Of Structured Finance

Authors: Arnaud De Servigny, Norbert Jobst

1st Edition

ISBN: 0071468641, 978-0071468640

More Books

Students also viewed these Finance questions