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Need to calculate projected revenues, costs, and net cash flows. As well as know how cost and revenue per unit changes through time for each
Need to calculate projected revenues, costs, and net cash flows. As well as know how cost and revenue per unit changes through time for each option. Thanks! Edit: I was told I needed more information, but was not told what information was needed so if someone could tell me that would be great.
2. Projects The National Institute of Coal Operations (NICO) has committed to building a solar power plant as an effort to diversify and transition to renewable energies. A group of co- gineers from the University of New Orleans have offered to conduct the analysis that will evaluate the feasibility of four (4) designs for this company. They are going to evaluate these options tising a present worth analysis and annual cash flow analysis. The organiza tion currently only has enough money to execute one of the projects. NICO typically uses an interest rate of 10% and has estimated each project to have a 20-year horison. The four proposed designs are: 2.1. Design A A field of "fiat" solar panels angled to best catch the sun will yield 2.6 MW of power and will cost $87 million initially with first-year operating costs at $2 million, which will be growing $250,000 annually. It will produce electricity worth $6.9 million the first year and will increase by 10% each year thereafter. Its salvage value is estimated at $2 million 2.2. Design B A field of mechanized solar panels rotates from side to side so that they are always positioned parallel to the sun's rays, maximizing the production of electricity. The design will yield 3.1 MW of power and will cost $90 million initially with first-year operating costs at $3.5 million, which will grow $200,000 annually. It will produce electricity worth $5.5 million the first year and will increase 13% each year thereafter. Its salvage value is estimated at $5 million 2.3. Design C This design rises a field of mirrors to focus the sun's rays onto a boiler mounted in a tower. The boiler then produces steam and generates electricity the same way a coal-fired plan operates. This system yields 3.3 MW of power and will cost $60 million initially with first-year operating costs at $3 million, which will grow $350,000 anmully. It will produce clectricity worth $8.5 million the first year and will increase 8% cach year. Its salvage value is estimated at $1.5 million 2.4. Design D The last design uses the same techniques as design (with mirrors being produced with a different technology). However, this system yields 5.3 MW of power and will cost $72 million initially with first-year operating costs at $2.5 million, which will grow $450,000 annually. It will produce electricity worth $5.5 million the first year and will increase 12.5% cach year. Its salvage value is estimated at $1.5 million 2Step by Step Solution
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