Question

In: Electrical Engineering

Total upfront cost Estimated lifetime Project 1: Library Lighting $1,642,724, 20 years Project 2: Parking lot...

Total upfront cost Estimated lifetime
Project 1: Library Lighting $1,642,724, 20 years
Project 2: Parking lot PV $8,198,711, 25 years
price for energy of $0.14/kWh
Assume a company seeks financing for each of these projects. If the interest rate from the bank is 5% for
the duration of the expected lifetime, calculate the total annual levelized cost for building and operating each of these projects.

Solutions

Expert Solution

Manojponduru answered 1 year ago
Next > < Previous

Related Solutions

The upfront cost of the project is $30,000. The company has estimated that it can generate...
The upfront cost of the project is $30,000. The company has estimated that it can generate cash flows of $10,000 in each of the next two years, and then a final $20,000 cash flow before the brewing system has to be replaced. The company plans to depreciate the system over 3 years with annual straight-line depreciation expenses of $10,000. As part of its analysis the company plans to perform a capital budgeting analysis to assess the viability of the purchase....
Project cost $100 000 Estimated life 5 years Estimated residual value $20 000 Annual Net Cash...
Project cost $100 000 Estimated life 5 years Estimated residual value $20 000 Annual Net Cash flow $30 000 Required rate of return 10% Given the data above, calculate the internal rate of return (IRR). (not using excel)
1. The Lifetime of the Sun. The total mass of the sun is about 2 x...
1. The Lifetime of the Sun. The total mass of the sun is about 2 x 1030 kg, of which about 75% was hydrogen when the sun formed. However, only about 13% of this hydrogen ever becomes available for fusion in the core. The rest remains in layers of the sun where the temperature is too low for fusion.        a) Use the given data to calculate the total mass of hydrogen available for fusion over the lifetime of the...
Given the following data       Output        Total cost output total cost 0 6 1 14 2 20...
Given the following data       Output        Total cost output total cost 0 6 1 14 2 20 3 24 4 32 5 45 6 60 What is the value of total fixed cost? _______ What is the value of total variable cost when output= 4? _______ What is the value of average total cost when output equals 6?______ What is the marginal cost of the fifth unit?_______ AT what level of output is marginal cost at its minimum value? _____
Machine cost = $500,000 Project life = 2 years Tax allowance for machine = 20% (reducing...
Machine cost = $500,000 Project life = 2 years Tax allowance for machine = 20% (reducing balance method) Tax rate = 15% (payable half in the current year) Cost of capital before tax = 10% General rate of inflation = 4% The incremental cash inflows from project = $2 million p.a (in today’s value) The resale value of the machine is calculated at the end of the project to be the same as the net book value of the asset...
1. Determine the average rate of return for a project that is estimated to yield total...
1. Determine the average rate of return for a project that is estimated to yield total income of $421,200 over four years, has a cost of $720,900, and has a $89,100 residual value. Round to the nearest whole number. ____ % 2. A project has estimated annual net cash flows of $54,000. It is estimated to cost $307,800. Determine the cash payback period. If required, round your answer to one decimal place. ____years 3. A project has estimated annual net...
At the starting point of 20 time periods duration of a project, the total direct cost...
At the starting point of 20 time periods duration of a project, the total direct cost is 6,000 and total indirect cost is 2,000 with a total of 8,000. After crashing a critical activity that total drops to 7,940 at 19 time periods with total direct cost of $6040. The total cost drops again to 7,890 at 18 with total direct cost $6090, stays 7,890 at 17 but total direct cost becomes $6190, rises to 8,190 at 16 with total...
A project has an initial cost of $160,000 and an estimated salvage value after 15 years...
A project has an initial cost of $160,000 and an estimated salvage value after 15 years of $75,000. Estimated average annual receipts are $30,000. Estimated average annual disbursements are $16,000. Assuming that annual receipts and distributions will be uniform for the 15 years, compute the prospective rate of return before taxes.
XM Radio was depreciating its satellites over 20 years (total cost of $20 million), for each...
XM Radio was depreciating its satellites over 20 years (total cost of $20 million), for each of five satellites, useful life is only seven years due to the intensity of the sun rays. With reference to the scenario, answer the following questions: 1. How and when should this discovery be recorded in the financial statements of the company? Explain your response. 2. If the company issues quarterly financial statements and the discovery is made in the third quarter, should this...
XM Radio was depreciating its satellites over 20 years (total cost of $20 million), for each...
XM Radio was depreciating its satellites over 20 years (total cost of $20 million), for each of five satellites, useful life is only seven years due to the intensity of the sun rays. As the accountant what would you recommend to management and why? Be sure to address the accounting implications, explaining your rationale.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT