Question: Can I please get help with the following 1 . Conduct a high - level estimate of the NPV of the Investment ( this can

Can I please get help with the following
1. Conduct a high-level estimate of the NPV of the Investment (this can be a very simple one-line derivation).
Base Case Assumptions:
Original Hydrogen Price: $4,000 per tonne
Annual Cash Inflows (Base Case): $20 million
Discount Rate: 10%
Project Life: 20 years
Terminal Value: $50 million
Initial Investment: $150 million
Scenario: Hydrogen Price Decrease by 10%
Reduced Hydrogen Price: $4,000\times 0.90= $3,600 per tonne
Reduced Annual Cash Inflows: $20 million \times 0.90= $18 million
2. Evaluate the payback period of the Investment.
Total Capital Expenditure: US$150 million
Annual Cash Inflows: US$32 million
3. Calculate - internal rate of return (IRR) and sensitivity analysis
Parameters
Annual Cash Inflows: $32 million
Terminal Value (TV): $408 million
Initial Investment: $150 million
Project Life: 20 years (assumption)
Sensitivity Analysis
Hydrogen Price Sensitivity:
Current Assumptions: Hydrogen price = $4,000 per tonne
Scenario: Hydrogen price decreases by 10% to $3,600 per tonne
Impact: Decrease in annual revenue and potential negative effect on NPV and IRR.
Capital Cost Sensitivity:
Current Assumptions: Capital costs = $150 million
Scenario: Increase in capital costs by 10% to $165 million
Impact: Higher initial investment affecting payback period and reducing NPV.
Discount Rate Sensitivity:
Current Assumptions: Discount rate =10%
Scenario: Increase in discount rate to 12%
Impact: Lower NPV and IRR reflecting higher cost of capital and risk.

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