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A company is choosing between two power options. The first is rotating solar panels, the...

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Finance

A company is choosing between two power options. The first is rotating solar panels, the second is fixed. Details for each are given below.

Key inputs
Project life 30
Land cost 5000000
Land appreciation rate 1.50%
Sale price per MWh 80
Price increase per 3 years 2
First 5 year gov rebate per MWh 70
Cleaning cost in year 30 50000
Discount rate 8%
Tax 30%
Discounted capital gain tax 15%
Days per year 365
Efficiency lose yearly 0.75% per annual
Solar System
Rotating system
Installation cost per MWh 1300000
Total installed capacity 25 MWh
Effective hours per day 5.6
cost percentage of sales 10%
depreciation straight line zero salvage
Fix system
Installation cost per MWh 1100000
Total installed capacity 30 MWh
Effective hours per day 4.5
cost percentage of sales 8%
depreciation straight line zero salvage

Write two financial analyses in excel, one for each option, and state the preferred option.

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