Opportunity to invest in start-up company

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Suppose you have an opportunity to invest in a start-up company that builds solar power factories. A newly proposed facility just outside of Columbus would generate about 120,000 MWh (1 MWh = 1000 KWh), and cost $25 million to install.

If the social cost of carbon is $10 per MWh, what is the present value of the social benefit provided by ENGIE-Axium if it undertakes this project? Assume only a discount rate of 3% for this calculation and a 5-year horizon.

Reference no: EM131887702

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