Question: I've been given the information in the Input Tables below and am struggling to understand how to calculate the figures (and where to put them
I've been given the information in the Input Tables below and am struggling to understand how to calculate the figures (and where to put them in) for the Insourced table at the bottom. Can someone give me a breakdown?
Input Tables Table 1: Quotes for the Outsourced Scenario Warehouse Supply and installation quoted North $6,000,000 South $5,000,000 North + South combined $10,000,000 Table 2: Installation Costs for the Insourced Scenario Warehouse Installation cost estimate North $225,000 South $175,000 North + South combined $400,000 Table 3: Electricity Purchase Costs/Credits and Total Electricity Usage Yr 1 Public Project electricity grid: I'r 1 total electricity Purchase usage kWh North $0.34 12,000,000 South $0.32 10,000,000 Table 4: Solar System Sizes and Capacities Solar system size: Sun exposure: Project Panels leach 1 Total solar system | Average daily KWh capacity KW' sqm) produced per kw' of capacity North 6,000 1,020 8.9 South 4,000 680 6.6Assumptions and Parameters Parameters Value Electiricty Inflation Rate 7% General Inflation Rate 3% Tax Rate 30% Discount Rate (Hurtle Rate) 8% Useful Life of Solar Panels 10 years Financial Reporting Depreciation 10 years straight-line Tax Reporting Depreciation 5 years straight-line Annual Maintenance Cost per Panel | $1.00 (inflated annually by 3%) Workings Metric North Warehouse South Warehouse Daily kWh Production 9.078 4.488 Annual kWh Production 3.313.470 1.638.120 Year 1 Electricity Cost Savings $1,126.579.80 $524.198.40Insourced ash flows, $0005 North Warehouse Capital Expenditures EBITDA EBIT Relevant Cash Flows NPV IRR South Warehouse Capital Expenditures EBITDA EBIT Relevant Cash Flows NPV IRR North & South Combined Capital Expenditures EBITDA EBIT Relevant Cash Flows NPV IRR
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