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Montano1993 [528]
3 years ago
11

Calculate the IRR if the power company gets a fixed feed-in tariff of $0.25/kWh, for 20 years and the salvage value of the plant

after 20 years is $20 M.
Mathematics
1 answer:
PIT_PIT [208]3 years ago
5 0

Answer:

Step-by-step explanation:

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

IRR =[\frac{FV}{PV}]^{1/n} -1

Where FV is final value and PV is present value

IRR = [\frac{20}{0.25}]^{1/20} -1

IRR = 0.24495

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brainly.com/question/2807928

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