Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The ABC Development Agency is planning construction of a wind-farm at a cost of N$29.2m, and will generate 50000MWh per year, which it can sell
The ABC Development Agency is planning construction of a wind-farm at a cost of N$29.2m, and will generate 50000MWh 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 20yrs. 1.1 What is the Net Present Value of the project? 15 marks 1.2 Is the project worthwhile if ABC uses 20% as its discount rate for project of this level of risk? 5 marks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started