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Group 1 and 6 1. A private investor in Turkana want to put up a solar power plant that will produce electricity for sale to

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Group 1 and 6 1. A private investor in Turkana want to put up a solar power plant that will produce electricity for sale to the residents of Kakuma camp in Turkana and part of it to KPLC. The power will be used by 20% of the community (population), 5 schools (with 16 classes each and 2 offices). The extra (which is 30% of power produced) will be sold to KPLC. a. Identify the best size and cost of solar power plant that can be used; the number of households to be served etc. b. Make realistic estimate of power usage in schools and by the community and determine what will be sold to KPLC and at what price. Group 2 and 4 1. An investor wish to start a water supply business in Gachororo in Juja. Give a realistic cost of drilling, the best size of pump, etc. a) Make realistic estimate of number of households, quantity of water to be supplied per household etc, Group 3 and 5 1. An investor wish to start a business of offering harvesting rice in Mwea using a new rice combine harvester (will only operate in one County). Identify the best available model and capacity, and price of combine. a) Make realistic estimate of number of acres to be harvetsed, duration etc For each of above a. List and explain in details the assumptions you have made (4Mks) b. Using (1) purchase price and installation cost of the solar plant, borehole and water pump or combine harvester; (2) the O \&M -repairs and maintenance component for the equipment/machinery -assume O\&M for year one is a \% (get acccepted value) of machine/equipment purchase price and O\&M grows at 20% p.a from previous years figure; and (3) realistic interest (discount) rate, estimate the economic life of the solar plant, borehole and water pump or combine harvester. Refer to internet (5Mks) c. Develop a realistic cashflow for the investment- Identify/estimate relevant costs (acquisation and installation of solar plant, borehole and water pump or combine harvester, and all O\&M costs-for equipment, labour, utilities etc, overhead cost etc), and revenues. Refer to internet. Show all the workings Use realistic discount rate, taxation rate, depreciation calculations,life span etc (9Mks) d. Using IRR, payback period and NPV determine if the project is viable. (5Mks) e. Using the price of purchase and installation cost of the solar plant, borehole and water pump or combine harvester, and appropriate calculated costs and the annual equivalent method, estimate how much each business should charge per acre (combine), m3 (water), or kWh (solar plant) f. Provide references (the source of information) (5Mks) (2Mks) Group 1 and 6 1. A private investor in Turkana want to put up a solar power plant that will produce electricity for sale to the residents of Kakuma camp in Turkana and part of it to KPLC. The power will be used by 20% of the community (population), 5 schools (with 16 classes each and 2 offices). The extra (which is 30% of power produced) will be sold to KPLC. a. Identify the best size and cost of solar power plant that can be used; the number of households to be served etc. b. Make realistic estimate of power usage in schools and by the community and determine what will be sold to KPLC and at what price. Group 2 and 4 1. An investor wish to start a water supply business in Gachororo in Juja. Give a realistic cost of drilling, the best size of pump, etc. a) Make realistic estimate of number of households, quantity of water to be supplied per household etc, Group 3 and 5 1. An investor wish to start a business of offering harvesting rice in Mwea using a new rice combine harvester (will only operate in one County). Identify the best available model and capacity, and price of combine. a) Make realistic estimate of number of acres to be harvetsed, duration etc For each of above a. List and explain in details the assumptions you have made (4Mks) b. Using (1) purchase price and installation cost of the solar plant, borehole and water pump or combine harvester; (2) the O \&M -repairs and maintenance component for the equipment/machinery -assume O\&M for year one is a \% (get acccepted value) of machine/equipment purchase price and O\&M grows at 20% p.a from previous years figure; and (3) realistic interest (discount) rate, estimate the economic life of the solar plant, borehole and water pump or combine harvester. Refer to internet (5Mks) c. Develop a realistic cashflow for the investment- Identify/estimate relevant costs (acquisation and installation of solar plant, borehole and water pump or combine harvester, and all O\&M costs-for equipment, labour, utilities etc, overhead cost etc), and revenues. Refer to internet. Show all the workings Use realistic discount rate, taxation rate, depreciation calculations,life span etc (9Mks) d. Using IRR, payback period and NPV determine if the project is viable. (5Mks) e. Using the price of purchase and installation cost of the solar plant, borehole and water pump or combine harvester, and appropriate calculated costs and the annual equivalent method, estimate how much each business should charge per acre (combine), m3 (water), or kWh (solar plant) f. Provide references (the source of information) (5Mks) (2Mks)

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