Respuesta :
Answer:
0.2449 or 24.49%
Step-by-step explanation:
Calculate the IRR if the power company gets a fixed feed-in tariff of $0.25/kWh.
IRR means Internal Rate of Return is given by
[tex]IRR=(\frac{FV}{PV})^{\frac{1}{n}}-1[/tex]
Where, FV = Final value ($20)
PV = Present value ($0.25)
N = 20 years
Now put the values
[tex]IRR=(\frac{20}{0.25})^{\frac{1}{20}}-1[/tex]
= [tex]IRR=(80)^{\frac{1}{20}}-1[/tex]
= 1.24495742 - 1
= 0.24495742
Converting in percentage :
0.24495742 × 100 = 24.49%
IRR = 0.2449 or 24.49%
Answer:
IRR = 0.24495
Step-by-step explanation:
Given data:
Tariff =$0.25
So, present value = $0.25
N = 20 year
salvage value after 20 year is $20 M
final value is $20 M
IRR means internal rate of return and it is given as
[tex]IRR =[\frac{FV}{PV}]^{1/n} -1[/tex]
Where FV is final value and PV is present value
[tex]IRR = [\frac{20}{0.25}]^{1/20} -1[/tex]
IRR = 0.24495
