Financial Analysis - Present Worth Approach
Description
The basic motive of any investment in a capitalistic society is to earn more money. Value of money varies with time. For example, if someone has $100 today and deposit it in a bank offering an interest rate of say 10 percent, after one year his deposit will grow to $110, making him richer by $10. Thus, today's $100 is worth $110 after one year. In other words, $110 available after one year is worth only for $100 today.
Wind energy projects are investments lasting for 20 to 30 years. There are cash inflows and outflows during all these years in the form of benefits and costs related to the project. Thus, for getting the real picture of the project economics, costs and benefits over the entire life span of the project has to be considered.
Wind energy projects are investments lasting for 20 to 30 years. There are cash inflows and outflows during all these years in the form of benefits and costs related to the project. Thus, for getting the real picture of the project economics, costs and benefits over the entire life span of the project has to be considered.
Input: Turbine Rated Power, PR Capacity Factor, CF Electricity Sold Rate Discount Rate, i Life Period, n Output: Present value of electricity generated is, PV(A)
Financial Analysis of Wind Turbine - Present Worth Approach
Calculator Output
Present value of electricity generated is, PV(A)1-20 = $ 982521 TK