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How to calculate the expected market value and socioeconomic benefit (NPV) of the project? Lifetime: 25 years Questions : 1) What is the expected market
How to calculate the expected market value and socioeconomic benefit (NPV) of the project?
Lifetime: 25 years
Questions:
1) What is the expected market value the solar production in year 2030? 2) What is the expected socioeconomic benefit (NPV) of the project? 3) What is the IRR of the project before taxes?
Capacity 30 MW Investment decision 31.12.2017 01.01.2019 First day of operation Full load hours (P-50) Coefficient of variation (for solar production) 2102 h/year 7% OPEX, real 2017 25 DKK/MWh CAPEX, real 2017 6.30 mDKK/MW Inflation 1% p.a. 240 DKK/MWh, real 2017 Power price forecast 2017-2050 Socio-economic discount rate 4.00% 6.00% 22% Weighted Average Cost of Capital Corporate tax rate Tax depreciation Bank loan type Debt share (bank loan) straight line, lifetime of project Annuity 70% Maturity of bank loan 20 years Interest rate of bank loan 4% Capacity 30 MW Investment decision 31.12.2017 01.01.2019 First day of operation Full load hours (P-50) Coefficient of variation (for solar production) 2102 h/year 7% OPEX, real 2017 25 DKK/MWh CAPEX, real 2017 6.30 mDKK/MW Inflation 1% p.a. 240 DKK/MWh, real 2017 Power price forecast 2017-2050 Socio-economic discount rate 4.00% 6.00% 22% Weighted Average Cost of Capital Corporate tax rate Tax depreciation Bank loan type Debt share (bank loan) straight line, lifetime of project Annuity 70% Maturity of bank loan 20 years Interest rate of bank loan 4%Step by Step Solution
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