Question: please show how you did d,e,f step by step (30 p). You need to evaluate the financial feasibility of a small photovoltaic system project for
please show how you did d,e,f step by step
(30 p). You need to evaluate the financial feasibility of a small photovoltaic system project for your customer. The system is rated at 5 k W, cost $18,000 and you expect it to operate with capacity factor following: of 0.4 for 20 years. If the cost of electricity is 10c/kwh and your discount rate is 9%. a) How much money will you save per year on electrical bill? b) What is the NPV? c) Do you need a tax incentive for your project to be profitable? If yes, how much? d) What is NPV and IRR if the tax incentive is $4,000? e) What is the annualized price of electricity from the PV system (without tax incentive) and how it compares with the current utility price? f) What is the price of electricity from PV if instead of paying cash, you take a 20 year loan at 9%? (30 p). You need to evaluate the financial feasibility of a small photovoltaic system project for your customer. The system is rated at 5 k W, cost $18,000 and you expect it to operate with capacity factor following: of 0.4 for 20 years. If the cost of electricity is 10c/kwh and your discount rate is 9%. a) How much money will you save per year on electrical bill? b) What is the NPV? c) Do you need a tax incentive for your project to be profitable? If yes, how much? d) What is NPV and IRR if the tax incentive is $4,000? e) What is the annualized price of electricity from the PV system (without tax incentive) and how it compares with the current utility price? f) What is the price of electricity from PV if instead of paying cash, you take a 20 year loan at 9%
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