Question Details

(Solved by Expert Tutors) You have been approached by a developer with South Carolina solar>


project. Your manager wants to understand how attractive S.C. market could be or not the particular opportunity is feasible and meets the company's investment criteria:


The Following part is the information regarding the project:
Investment Date: 2014
Commercial Operation Date: 2015
Life of Plant: 20 years (assume no terminal value)
Depreciation Assumptions: 5-year straight line depreciation (assume no salvage value)
Production per-year: 50,000 MWh
Price (you get for each MWh you deliver): $150/MWh (Price will be escalating at the rate of CPI)
CPI: 2.5%
Capital Expenditure: $40,000,000 (Cost of the Plant)
Operating Expenses: Operating expenses (COGS) are 25% of EBITDA for year 1 and escalating each year at CPI.
Investment Tax Credit: South Carolina provides 3% investment tax credit on the initial investment.
Taxes: 35%


Based on the information provided, please calculate the IRR and NPV based on the after-tax cash flows and discount rate is 8%. What is your assessment?


Please find the excel template in the website below. Choose the one that says INDIVIDUAL PROJECT EXCEL TEMPLATE.


http://www.zaferyuksel.com/theory-of-corporate-finance.html

 


Solution details:

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Apr 19, 2020

EXPERT

Tutor

ANSWER RATING

YES, THIS IS LEGAL

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now