How important is the discount rate

Assignment Help Financial Management

Reference no: EM131448795

How important is the discount rate? Calculate and plot the levelized cost of energy (LCOE) as a function of the debt rate for 4%≤idebt≤12% for a large utility-scale PV plant in Abu Dhabi. The size of the plant is 400MW, the debt to equity ratio is 80:20. Equity returns are set at 10%. In AD the plant achieves 1700FLH on average per year. The overnight cost of constructing the plant is 0.5US$/Wpeak installed. Opex costs are 1% of the Capex. How much should the overnight costs drop to counteract an increase of debt from 4% to 8% in order to keep the LCOE equal to what it was at 4% financing?

Reference no: EM131448795

Questions Cloud

Develop the first two parts of the target market section : Develop the first two parts of the Target Market section, which includes an overview of the demographics (age, income, family members, and birthdays)

Business units in different industries : Include if the company is sharing resources and capabilities between the business units in different industries

Part one progressive case study-bill grills : It seemed that things were finally settling down and getting better. After confronting Jamaal about the steel cutters and benders

Conduct a swot analysis of the current situation : Continuing to use the SHRM case study presented in the classroom, students will present a second power point presentation.

How important is the discount rate : How important is the discount rate

What is the purpose of probable cause : What is the purpose of probable cause? Do you think this is a fair burden of proof, or should more or less proof be required

Describe the stages of team development : How might stronger team skills benefit you? How might you use teamwork skills in your job? Provide specific examples.

Typical stereotypes and communication issues : "Identify one or more typical stereotypes and/or communication issues that you might encounter in a business meeting between either:

How can police discretion be applied beneficially : How can police discretion be applied beneficially and inappropriately? Provide specific examples to support your answer

User Account

All Pages