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No Spam!!! Step by step FULL calculation..................... answer 2 questions! Bothe are the same, just values are different. Qs 1. For an offshore wind farm,

No Spam!!! Step by step FULL calculation..................... answer 2 questions! Bothe are the same, just values are different.

Qs 1. For an offshore wind farm, life cycle costs _ include costs associated with project, design & development , manufacturing, installation, exploration and dismantling and cleaning cost. life-time of the project = 60 years. if NPV is positive (calculate by using real discount rate of 5%). We will use acronym CDC for present value of the cost of dismantling and cleaning in year 60.

Case I: present value of the cost of dismantling and cleaning amounts to 5.4% of the future value of these costs .

Case II: An extension of lifetime of this project by 5 extra years can reduce the value of CDC by 21.6%

Which one of the following statements is true?

a. I & II true,

b. I & II false,

c. I true, II false,

d. I False, II true

Qs 2. For an offshore wind farm, life cycle costs _ include costs associated with project, design & development , manufacturing, installation, exploration and dismantling and cleaning cost. life-time of the project = 35 years. if NPV is positive ( calculate by using real discount rate of 4%). We will use acronym CDC for present value of the cost of dismantling and cleaning in year 35.

Case I: present value of the cost of dismantling and cleaning amounts to 18.1 % of the future value of these costs .

Case II: An extension of lifetime of this project by 5 extra years can reduce the value of CDC by 17.8%

Which one of the following statements is true?

a. I & II true,

b. I & II false,

c. I true, II false,

d. I False, II true

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