Can someone please find the Revenue, Cost, and Net cash flow of these designs C...

90.2K

Verified Solution

Question

Finance

Can someone please find the Revenue, Cost, and Net cash flow of these designs C and D in EXCEL. Please clearly show the formulas and calculations used.
Thank you I'll be sure to upvote if done correctly.

image
image
The National Institute of Coal Operations (NICO) has committed to building a solar power plant as an effort to diversify and transition to renewable energies. A group of en- gineers from the University of New Orleans have offered to conduct the analysis that will evaluate the feasibility of four (4) designs for this company. They are going to evaluate these options using a present worth analysis and annual cash flow analysis. The organiza- tion currently only has enough money to execute one of the projects. NICO typically uses an interest rate of 10% and has estimated each project to have a 20-year horizon. The four proposed designs are: 2.3. Design C This design uses a field of mirrors to focus the sun's rays onto a boiler mounted in a tower. The boiler then produces steam and generates electricity the same way a coal-fired plan operates. This system yields 3.3 MW of power and will cost $80 million initially with first-year operating costs at $3 million, which will grow $350,000 annually. It will produce electricity worth $8.5 million the first year and will increase 8% each year. Its salvage value is estimated at $1.5 million. 2.4. Design D The last design uses the same techniques as design (with mirrors being produced with a different technology). However, this system yields 5.3 MW of power and will cost $72 million initially with first-year operating costs at $2.5 million, which will grow $450,000 annually. It will produce electricity worth $5.5 million the first year and will increase 12.5% each year, Its salvage value is estimated at $1.5 million

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students