An investor of a photovoltaic park 500 kw has considered the following data: Investment cost: 300.000...
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An investor of a photovoltaic park 500 kw has considered the following data: Investment cost: 300.000 euro Connection to PPC(AEH) network cost: 50.000 euro Annual Operational/Maintenance cost: 20.000 euro Annual Revenue (electric power sale): 60.000 euro 20 years guaranteed power sale / r = 8% (correction factor/interest rate) a. Calculate the NPV of the project b. Pre-assume funding of 40% on the initial cost of investment in the first 2 years of operation (divided in two equal installments) and the annual purchase value of power by PPC is reduced by 10% for the first 10 years and by 20% during the next 10 years. Compare the investment outcome with the outcome of question a. An investor of a photovoltaic park 500 kw has considered the following data: Investment cost: 300.000 euro Connection to PPC(AEH) network cost: 50.000 euro Annual Operational/Maintenance cost: 20.000 euro Annual Revenue (electric power sale): 60.000 euro 20 years guaranteed power sale / r = 8% (correction factor/interest rate) a. Calculate the NPV of the project b. Pre-assume funding of 40% on the initial cost of investment in the first 2 years of operation (divided in two equal installments) and the annual purchase value of power by PPC is reduced by 10% for the first 10 years and by 20% during the next 10 years. Compare the investment outcome with the outcome of question a.
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a Calculate the NPV of the project assuming no funding and full power purchase value Initial inve... View the full answer
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