also provide excel sheet for 1.6 part.

1 A renewable energy electricity supply technology has the following characteristics: 1.1 If the owner can sell the electricity at 30c/kWh, what is the simple payback period for the technology? 1.2 Would the owner invest in this technology if (s)he set a strict maximum four-year payback period? 1.3 What would the selling price for the electricity have to rise to for the owner to invest in the technology if (s)he set a maximum three-year payback period? 1.4 What is the Present Worth (Net Present Value) of the investment over a 25 year assessment period and real discount rate of 5% when the electricity price is 30c/kWh ? 1.5 What is the real internal rate of return for the owner of this technology over a 25-year assessment period when the electricity price is 30c/kWh ? Would the owner invest if their threshold real rate of return was 20% ? 1.6 Derive an analytical relationship between simple payback period and internal rate of return (IRR) over a 15-year assessment period for a project with a single fixed capital payment (K) at the beginning of year 1 and equal constant-dollar annual net benefits over this period (B). Hint: the simple payback period will be K/B. Use the equation for IRR given in the week 2 lecture. Then solve this equation iteratively using Excel for payback periods between 1 and 15, and plot the corresponding graph of IRR vs Payback