Explain the following terms used for calculating the LCOE Levelized Cost of Electricity in the case

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Question:

Explain the following terms used for calculating the LCOE – Levelized Cost of Electricity in the case of PV – power.

A. Debt to equity ratio

B. Interest rate

C. Return on Equity

D. Discount factor

E. Levelized cost of electricity

Explain this using the norms used in accountancy subject for commercial costing analysis. If the debt-to-equity ratio is changed from normal 70:30 to 30:70 (reverse the ratio), what will happen to the LCOE? Give reasons for your answer.

Posted Date: Nov 15, 2021 07:32 AM

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Explain the following terms used for calculating the LCOE Levelized Cost of Electricity in the case

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Expert Answer:

A Debt to equity ratio The debttoequity DE ratio is used to evaluate a companys financial leverage and is calculated by dividing a companys total liab... View the full answer

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