Greenstreet Partners - Puma, Illinois Solar Field Acquisition Year Field Purchase $(1,000,000) Power Produced (kW) 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 Price per kW 0.15 0.105 0.105 0.10 $ 0.10 $ 0.10 Power Purchase Revenue $ 110,000 $ 110,000 $ 110,000 $ 110,000 $ 110,000 Field Sale $ 800,000 Total Cashflows $(1,000,000) $ 110,000 $ 110,000 $ 110,000 $ 110,000 $ 910,000 Unlevered Calculations Discount Factor PV of Cash Flows S(1,000,000) NPV of Project IRR of Project 1.00 Il Levered Calculations Debt Payment Calc Debt Pay Off Calc N N 5% PV FV PMT 20 5% 500000 0 Calculate PV FV PMT $0.00 $(1,000,000) $ 110,000 $ 110,000 $ 110,000 $ $ 500,000 110,000 $ 910,000 Unlevered Cash Flows Debt Return of Capital Debt Payment Pay off Debt Levered Cash Flows Discount Factor PV of Cash Flows NPV of Project $ (500,000) $ 110,000 $ 110,000 $ 110,000 $ 110,000 $ 910,000 9% 1.00 S (500,000) IRR of Project Should we do this project at all? If so, levered or unlevered? Explain below