Question
The following are the information about a power generation project, please calculate the cashflows and apply NPV and IRR technique to decide about the acceptance
The following are the information about a power generation project, please calculate the cashflows and apply NPV and IRR technique to decide about the acceptance or rejection of the project.
| Description | Estimate (Original) | Description | Estimate (Original) |
| Initial Cost | CAD1,000,000 | Power Generated and sold / year (KWH) | 1,000,000 |
| Estimated Life (Years) | 10 | Price of Electricity / KWH | CAD0.25 |
| Depreciation / year | CAD100, 000 | Tax Rate | 40% |
| Operating Costs / year | CAD50, 000 | Discount Rate | 9% |
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Management And Cost Accounting
Authors: Colin Drury
5th Edition
1861525362, 978-1861525369
