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
Conduct a highlevel estimate of the NPV of the Investment this can be a very simple oneline derivation
Base Case Assumptions:
Original Hydrogen Price: $ per tonne
Annual Cash Inflows Base Case: $ million
Discount Rate:
Project Life: years
Terminal Value: $ million
Initial Investment: $ million
Scenario: Hydrogen Price Decrease by
Reduced Hydrogen Price: $times $ per tonne
Reduced Annual Cash Inflows: $ million times $ million
Evaluate the payback period of the Investment.
Total Capital Expenditure: US$ million
Annual Cash Inflows: US$ million
Calculate internal rate of return IRR and sensitivity analysis
Parameters
Annual Cash Inflows: $ million
Terminal Value TV: $ million
Initial Investment: $ million
Project Life: years assumption
Sensitivity Analysis
Hydrogen Price Sensitivity:
Current Assumptions: Hydrogen price $ per tonne
Scenario: Hydrogen price decreases by to $ per tonne
Impact: Decrease in annual revenue and potential negative effect on NPV and IRR.
Capital Cost Sensitivity:
Current Assumptions: Capital costs $ million
Scenario: Increase in capital costs by to $ million
Impact: Higher initial investment affecting payback period and reducing NPV
Discount Rate Sensitivity:
Current Assumptions: Discount rate
Scenario: Increase in discount rate to
Impact: Lower NPV and IRR reflecting higher cost of capital and risk.
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