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Calculate, discuss and compare the results of production cost for each scenario - Prepare the cash flow and NPV after 10 years for each scenario
Calculate, discuss and compare the results of production cost for each scenario - Prepare the cash flow and NPV after 10 years for each scenario according to the below Table Year Capital cost Workers Raw materials Other operation costs Revenue Cash flow NPV - Draw the profile of NPVs over 10 years to compare the three scenarios (NPV in Y-axis and Year in X-axis)
You are asked as a project manager to conduct financial analysis of a new production line to assemble photovoltaic modules in Qatar. The factory has three annual production alternatives of 10MW, 20MW, and 40MW. The following data of the project are given: Item 10MW/year 20MW/year 40MW/year Initial cost ($) 900,000.00 900,000.00 1,500,000.00 Raw materials ($/year) 2,500,000.00 5,000,000.00 10,000,000.00 2,600,000.00 4,100,000.00 6,800,000.00 Production workers ($/year) Other operation cost ($/year) 100,000.00 150,000.00 250,000.00 Salvage value ($) 500,000.00 500,000.00 550,000.00 10 10 The lifetime of the project (years) 10 Follow the below template as guidance for your report. Year Capital cost Workers Raw materials Other operation costs Revenue Cash flow NPV 0 1 2 3 4 5 6 7 8 9 10Step by Step Solution
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