Question

Future of Power Systems in Saskatchewan (minimum of 7 pages, maximum of 12 pages less references, ToC, etc.) which discusses:

The current energy generation portfolio of Saskatchewan (as of Dec 2018)

- The options available for conventional (fossil fuel/hydro electric) generation in the future

- The options available for renewable, or near zero emission generation in the future

For each of your main points, discuss in terms of:

- Economics

– both capital cost and operating cost

- Environmental impacts –

- Are there any opportunities or issues related to first nations interests in Saskatchewan

Answer 1

Cost of capital is vital part of investment decision as it is used to measure the value of investment proposal provided by the business concern. It is used as a discount rate to determine the present value of future cash flows related with capital projects. Cost of capital is also termed as cut-off rate, target rate, hurdle rate and required rate of return. When the companies are using different sources of finance, the finance manager must take vigilant decision with regard to the cost of capital; because it is closely associated with the value of the firm and the earning capacity of the firm.

Operating costing is an extension and refined form of process costing. It is also more or less very similar to single or output costing. The operating costing gives more emphasis on providing services rather than the cost of manufacturing an article. The services provided may be for sale to the general public or they may be provided within an organization.