Question The developer and owner of a shopping mall is planning to install solar PV panels on the roof top. Project Costs: The 100-kw system will cost $225,000 to install on 600 m of space available on the roof top. It will have a useful life 20 years and a salvage value of $2,000. Annual operations and maintenance cost will be $1.500. Energy output: Based on Singapore weather conditions, the system is capable of producing 170,000 kwh of electricity in the first year of operation. However, this output will degrade at a rate of 2% per year through its useful life. The electricity produced will be sold to either the shopping mall's tenants or to the power grid at 18 cents per kwh. Project Financing: 60% of the initial system cost will be financed via a 5-year bank loan at an interest rate of 5% per year. The loan will be repaid with 5 equal end-of-year payments starting at the end of the first year. The other 40% of the initial project cost will be financed with company's equity capital. The company computes the WACC and determines that MARR should be 10% for the purpose of evaluating the feasibility of this project (a) What is the annual repayment amount for the bank loan? (1 mark) (6) What is the Present Worth of the project? Is the project financially feasible? (3 marks) (c) What is the IRR of the project? (3 marks) (d) The Levelized Cost of Energy (LCOE) is the "average" equivalent cost of installing and operating an energy generation asset, per unit of total energy generated over the useful life. Equivalently, LCOE is the constant sale price of electricity generated that makes PW = 0. Determine the LCOE of the proposed solar PV project in cents/kwh. (3 marks) 10 11:59 pm A deck of playing cards is divided into 4 equal exactly one ace? 4 equal decks. What is the probability that each deck contains Model this problem using MS Excel. Your runs. Furthermore, a new set of 5.000 simulation runs should be pressed. MS Excel. Your spreadsheet should display the results for 5.000 simulation lation runs should be generated when the F9 key is Upload the following two files to the su e two files to the submission folder on LumiNUS before 3 Mar 2020 11:59pm: MS Excel file containing your simulation A word document clearly stating: The cell that displays the number of simulation runs The cell that displays the number of simulation runs where each deck contains exactly one ace The cell that displays the estimated probability What each column in your MS Excel file describes Hints: 1. We have done this problem in class. You can check the accuracy of your simulation by comparing the answer obtained versus the solution obtained in class. 2. The IE, QUOTIENT or MOD functions in MS Excel can be used to divide your cards into four equal decks. 'If multiple columns describe something similar, you can say "Columns A to Z represent...." instead of having of an individual description for each column. Question The developer and owner of a shopping mall is planning to install solar PV panels on the roof top. Project Costs: The 100-kw system will cost $225,000 to install on 600 m of space available on the roof top. It will have a useful life 20 years and a salvage value of $2,000. Annual operations and maintenance cost will be $1.500. Energy output: Based on Singapore weather conditions, the system is capable of producing 170,000 kwh of electricity in the first year of operation. However, this output will degrade at a rate of 2% per year through its useful life. The electricity produced will be sold to either the shopping mall's tenants or to the power grid at 18 cents per kwh. Project Financing: 60% of the initial system cost will be financed via a 5-year bank loan at an interest rate of 5% per year. The loan will be repaid with 5 equal end-of-year payments starting at the end of the first year. The other 40% of the initial project cost will be financed with company's equity capital. The company computes the WACC and determines that MARR should be 10% for the purpose of evaluating the feasibility of this project (a) What is the annual repayment amount for the bank loan? (1 mark) (6) What is the Present Worth of the project? Is the project financially feasible? (3 marks) (c) What is the IRR of the project? (3 marks) (d) The Levelized Cost of Energy (LCOE) is the "average" equivalent cost of installing and operating an energy generation asset, per unit of total energy generated over the useful life. Equivalently, LCOE is the constant sale price of electricity generated that makes PW = 0. Determine the LCOE of the proposed solar PV project in cents/kwh. (3 marks) 10 11:59 pm A deck of playing cards is divided into 4 equal exactly one ace? 4 equal decks. What is the probability that each deck contains Model this problem using MS Excel. Your runs. Furthermore, a new set of 5.000 simulation runs should be pressed. MS Excel. Your spreadsheet should display the results for 5.000 simulation lation runs should be generated when the F9 key is Upload the following two files to the su e two files to the submission folder on LumiNUS before 3 Mar 2020 11:59pm: MS Excel file containing your simulation A word document clearly stating: The cell that displays the number of simulation runs The cell that displays the number of simulation runs where each deck contains exactly one ace The cell that displays the estimated probability What each column in your MS Excel file describes Hints: 1. We have done this problem in class. You can check the accuracy of your simulation by comparing the answer obtained versus the solution obtained in class. 2. The IE, QUOTIENT or MOD functions in MS Excel can be used to divide your cards into four equal decks. 'If multiple columns describe something similar, you can say "Columns A to Z represent...." instead of having of an individual description for each column
