Question
Question 1 (20 Marks) The ABC Development Agency is planning construction of a wind-farm at a cost of N$29.2m, and will generate 50000 MWh per
Question 1 (20 Marks)
The ABC Development Agency is planning construction of a wind-farm at a cost of N$29.2m, and will generate 50000 MWh per year, which it can sell into the grid as a Feed-In-Tariff at N$1.25/kWh or N$1250/MWh fixed for the next 20 yrs.
- What is the Net Present Value of the project? 15 marks
- Is the project worthwhile if ABC uses 20% as its discount rate for project of this level of risk? 5 marks
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Industrial Relations in Canada
Authors: Fiona McQuarrie
4th Edition
978-1-118-8783, 1118878396, 9781119050599 , 978-1118878392
