Suppose you are required to analyse the financing cash flows for a wave farm in New York. The investment cost of the project is 125 million dollars and the wave farm has borrowed the full amount from the Bank at an annual interest rate of 3.5%. The loan term equals the project life of 25 years. The wave farm is estimated to generate 120,000 megawatts (1 megawatt = 1000 kilowatts) of energy each year and will be sold to the grid at a fixed Feed-in-tariff rate of 15 cents per kilowatt. (provide working in an excel file) Assume a 5% discount rate 1. Find the NPV of the net cash flows of the wave farm in $ million 2. Find the IRR in $ million If the loan interest rate will be increased by 2% p.a. starting from year 6. 1. Find the new NPV 2. Find the new IRR In your answer, decompose the principal, interest and net cash flow for UQ using a conversion factor of 100,000. Assume there are no taxes paid on this project. Suppose you are required to analyse the financing cash flows for a wave farm in New York. The investment cost of the project is 125 million dollars and the wave farm has borrowed the full amount from the Bank at an annual interest rate of 3.5%. The loan term equals the project life of 25 years. The wave farm is estimated to generate 120,000 megawatts (1 megawatt = 1000 kilowatts) of energy each year and will be sold to the grid at a fixed Feed-in-tariff rate of 15 cents per kilowatt. (provide working in an excel file) Assume a 5% discount rate 1. Find the NPV of the net cash flows of the wave farm in $ million 2. Find the IRR in $ million If the loan interest rate will be increased by 2% p.a. starting from year 6. 1. Find the new NPV 2. Find the new IRR In your answer, decompose the principal, interest and net cash flow for UQ using a conversion factor of 100,000. Assume there are no taxes paid on this project