User Account

All Pages

Verify that the npv of the power plant

Assignment Help Microeconomics
Reference no: EM13828482

1. Using the annuity formula without Excel, verify that the NPV of the power plant is $11,756.21.

NPV= ($135,000×?(1+0.1)?^5-1)/(0.1×?(1+0.1)?^5 )-$500,000=$11,756.21

2. Using the formulas from class and the notes, with a discount rate of 10% verify that the LCOE is $89.31 per MWh.

LCOE=[(($500,000×0.1)/(1-?(1+0.1)?^(-5) ))÷4,500]+$60=$89.31/MWh

3. Using the formulas from class and the notes, with a discount rate of 5% verify that the LCOE is $85.66 per MWh

LCOE=[(($500,000×0.05)/(1-?(1+0.1)?^(-5) ))÷4,500]+$60=$85.66/MWh

Reference no: EM13828482

Questions Cloud

Example of a project that was challenged by control issues : Monitoring and controlling a project is a core activity for a project manager. Provide an example of a project that was challenged by control issues and describe what caused the situation
What key situational variables will influence the dog owner : From the second e-Activity, speculate, from the U.S. Census market projections, what key situational variables will influence the dog owner target market. Provide two ideas of how premium pet product manufacturers can use this information in their..
Determine effectiveness of negative advertising campaigns : Analyze the attitude change strategies. Determine the effectiveness of negative advertising campaigns in regard to changing the components of attitude. Use examples to illustrate your point
Efficacy of general plans and zoning : Summarize the history of land use planning in the United State as presented by Tyler and Ward and discussed in class. How has land use planning evolved? What was its initial purpose/function in the early 20th century and how did this change over t..
Verify that the npv of the power plant : Using the annuity formula without Excel, verify that the NPV of the power plant is $11,756.21 - with a discount rate of 5% verify that the LCOE is $85.66 per MWh.
Performance management-theory in practice : Evaluate the findings of the authors in regards to changes in the design, implementation, and effectiveness of performance management systems since earlier studies were conducted.
Recruitment and selection strategies for an organization : You have been appointed as the Human Resource (HR) Manager of a service-related business (i.e. companies that primarily earn revenue through providing intangible products and services) looking to open its subsidiary in Singapore.
Impact of absenteeism at work place : Write about the impact of absenteeism at work place and how organizations can deal with it.
What is the value of b : Express the following in the Σ notation and What is the value of b - Find the P( X ≤ 2 ); prob( X ≤ 3 ); prob( 2 ≤ x ≤ 3).

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd