Capital investment Annual 0&M costs Electricity sales Decommissioning 50MW onshore €65M €40k per 2MW 5-10 €c per kWh €3M for wind machine farm • Assume wind farm operates for 20 years • 110GWH @ 7.5 €c/kWh gives 8.2M€ annual income • 25×2MW wind turbines gives annual expenditure 1M€ • Discount rate = 8% Find net present value for the wind farm? Find LCOE for the wind farm?

Capital investment Annual 0&M costs Electricity sales Decommissioning 50MW onshore €65M €40k per 2MW 5-10 €c per kWh €3M for wind machine farm • Assume wind farm operates for 20 years • 110GWH @ 7.5 €c/kWh gives 8.2M€ annual income • 25×2MW wind turbines gives annual expenditure 1M€ • Discount rate = 8% Find net present value for the wind farm? Find LCOE for the wind farm?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Help please Exercise 1-How much do you need to invest today in a CD with an ROR of 5.5% if you want to purchase a car 3 years from now for $10,000? Exercise 2 - Your monthly rent and living expenses are $625. How much should be put into your money market amount today, to pay for the next 12 months? Assume your money market is currently paying 5% annually.
2
Problem 7 A firm is considering the following three alternatives, as well as a fourth choice: do nothing. Each alternative has a 7-year useful life. The firm's minimum attractive rate of return is 9½ %. A Alternative Initial cost $100,000 Uniform annual net income 24,036 Computed rate of return 15.00% B $130,000 30,198 13.87% с $330,000 69,936 10.96% Using incremental rate of return comparisons, determine which alternative should be selected.
An investment resulted in the following cash flow. What is the rate of return? Year Cash Flow -$700 1 $100 2 $175 3 $250 4 $325 O 7% 6% 6.5% 7.5%
A company is considering the purchase of new equipment for $93,000. The projected annual net cash flows are $36,600. The machine has a useful life of 3 years and no salvage value. Management of the company requires an 11% return on investment. What is the net present value of this machine assuming all cash flows occur at year-end? a. $31,000 b. $4,600 c. ($3,561) d. $35,600 e. $86,996
You are the financial manager of the firm LAB.inc which does research in the medical field, your company needs an estimate of a financing plan for a research project. The research project according to the evaluation of the experts will be spread over a period of 4 years. The annual funding required to conduct this research is $100,000 at the beginning of each year. The firm has set a term of 7 years to raise the necessary funds to finance this research, the nominal interest rate is 8% capitalized quarterly. a. How much does the company need to save at the end of each month to fund this research in 7 years? b. Draw the timeline for this financing plan by presenting all the relevant elements. If the firm wants to start financing the research project today t=0, by taking out a bank loan equal to the VA of all the financing needs of the research project (for the 4 years). c. Calculate the amount of monthly payments that the firm must pay to repay this bank loan for a period of 5 years?
ENGINEERING ECONOMICS 2. A local firm is establishing a sinking fund for the purpose of accumulating a sufficient capital to retire its outstanding bonds at maturity. The bonds are redeemable in 10 years and their maturity value is P150000. How much should be deposited each year if the fund pays interest at the rate of 3%? Draw a cash flow
Q8. Required information A new advertising campaign by a company that manufactures products that apply biometric, surveillance, and satellite technologies resulted in the cash flows shown. Year Cash Flow, $1000 0 1 1200 2000 2 -4000 3 4 -3000 2000 Calculate the unique external rate of return values using the ROIC method with an investment rate of 30% per year. The external rate of return using the ROIC method is %.
M
A cutting-edge product of Continental Fan had the following net cash flow series during its first 5-year period on the market. Find all rate of return values between 0% and 100%. (Round the final answer to three decimal places.) Year 0 1 2 3 45 5 The rate of return is %. Net Cash Flow, $ -54,000 37,000 29,000 10,000 -5,000 13,000
SOLVE AND GRAPH THE PROBLEM The Philippine Institute of Industrial Engineers (PIIE) is planning to put up its own building. Two proposals being considered are: A. The construction of the building now to cost P400,000 B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P200,000 By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?
9. Energy costs for green chemical treatment have increased uniformly over the past 5 years. If costs in year 1 are $26,000 and increase by $2,000 per year through year 5, the present value of the costs at 10% per year is: A. $102,900 B. $112,300 C. $122,100 D. $195,800 Please solve based the option max 15 minutes ASAP