compute the NPW of this project

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Reference no: EM133319089

Case: The Sunergy Company wants to invest in constructing and operating a 1 MW PV power plant in southern part of Hebron, if the initial cost of the plant is 1 million dollar and the expected annual maintenance and operational cost is $2000 with an expected lifetime of 25 years. During the first years of the project Synergy is expecting to sell 2000 MWh per year at a price of 10 cent per KWh. Each year the plant loses 1% of its total production and continues to lose at this rate for the rest of the project lifetime.

Question 1: If the Sunergy's MARR is 10%, compute the NPW of this project?

Question 2: Determine the IRR of such a project?

Reference no: EM133319089

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