Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor of a photovoltaic park 500 kw has considered the following data: Investment cost: 300.000 euro Connection to PPC(AEH) network cost: 50.000 euro

 

image text in transcribed 

An investor of a photovoltaic park 500 kw has considered the following data: Investment cost: 300.000 euro Connection to PPC(AEH) network cost: 50.000 euro Annual Operational/Maintenance cost: 20.000 euro Annual Revenue (electric power sale): 60.000 euro 20 years guaranteed power sale / r = 8% (correction factor/interest rate) a. Calculate the NPV of the project b. Pre-assume funding of 40% on the initial cost of investment in the first 2 years of operation (divided in two equal installments) and the annual purchase value of power by PPC is reduced by 10% for the first 10 years and by 20% during the next 10 years. Compare the investment outcome with the outcome of question a.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a Calculate the NPV of the project assuming no funding and full power purchase value Initial inve... 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

Global Investments

Authors: Bruno Solnik, Dennis McLeavey

6th edition

321527704, 978-0321527707

More Books

Students also viewed these Accounting questions

Question

-4 1 9. Let A = Find A-1, (A") and verify that (A")= (A-1)".

Answered: 1 week ago