You have been approached by a developer with south carolina, Ask an Expert

Finance

You have been approached by a developer with South Carolina solar project. Your manager wants to understand how attractive S.C. market could be or not the particular opportunity is feasible and meets the company’s investment criteria:

The Following part is the information regarding the project:

Investment Date: 2014

Commercial Operation Date: 2015

Life of Plant: 20 years (assume no terminal value)

Depreciation Assumptions: 5-year straight line depreciation (assume no salvage value)

Production per-year: 50,000 MWh

Price (you get for each MWh you deliver): $150/MWh (Price will be escalating at the rate of CPI)

CPI: 2.5%

Capital Expenditure: $40,000,000 (Cost of the Plant)

Operating Expenses: Operating expenses (COGS) are 25% of EBITDA for year 1 and escalating each year at CPI.

Investment Tax Credit: South Carolina provides 3% investment tax credit on the initial investment.

Taxes: 35%

First find the operating cash flows, investment and depreciation then the cash flow summary in order to calculate. Use Excel.

Based on the information provided, please calculate the IRR and NPV based on the after-tax cash flows and discount rate is 8%. What is your assessment?

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M92716993

Have any Question?Write your Review or question?

Related Questions in Financial Management

International financial management assignment -this

International Financial Management Assignment - This assignment consists of two parts, Part A and Part B. PART A - Assignment Question - As a recent graduate of Afin 867 you have been lucky enough to be offered a consult ...

Introductionlast week you determined the root causes of the

Introduction Last week, you determined the root cause(s) of the problem you are trying to resolve for your final paper. As a reminder, the decision you are working on is the one that you selected in week two. This week, ...

Answer each question in 75 words a piece use references if

Answer EACH question in 75 words A PIECE. Use references, if needed and cite. 1. Embark on a virtual field trip. Researching online, explore different career fields that interest you. Share with your classmates which car ...

Assignment1before the truth in lending act auto dealers

Assignment 1. Before the Truth in Lending Act, auto dealers used to use a trick called add on interest. Suppose you bought a $30,000 car and financed it over 5 years at 6% interest. To calculate your payment, they'd take ...

Part a-budgeting amp financial analysisassume the following

Part A-Budgeting & Financial Analysis Assume the following data for Spring Break Corp: Statement of Income: Balance Sheet: 2017 ...

When looking at the life of a project plan it is useful to

When looking at the life of a project plan, it is useful to graph and outline the cost variance (CV), and schedule variance (SV). Determining progress, or lack of progress, provides essential information to assess a give ...

Assignmentassignment purposes1 evaluate the characteristics

Assignment Assignment Purposes: 1. Evaluate the characteristics of e-commerce. 2. Demonstrate effective use of technology for communication. 3. Evaluate the effectiveness of an e-commerce Web site. 4. Explain the securit ...

We have seen that there are 3 phases discussion making and

We have seen that there are 3 phases (Discussion; Making and accepting proposals; and closing the deal), in the process. Please respond in about 300 words. Do we need to follow them in sequence, or can we be flexible bet ...

Assignment introduction to businessdirections be sure to

ASSIGNMENT : Introduction to Business Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure ...

Working capital management mini-casesyou may do this case

Working capital management mini-cases You may do this case alone or with up to two others. If you work with others, please submit only one assignment, but be sure it includes all names. Except for cases E and F, each cas ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Management Expert