Attached is a sample spreadsheet for a windmill project used in our group study for this class. The parameters are input in the yellow boxes and the sheet computes the NPV based on a 10 year life and the other inputs. The assignment is to complete a similar analysis on a project, but to justify all inputs including the capital cost, discount rate (which should be the WACC for DUK), and other parameters in yellow. Be sure to find justifications for all inputs used and provide references to the same. Be sure to use a useful life that makes sense for your project and to both justify your useful life and adjust the spreadsheet accordingly (note that a 10 year life is usually too short for this kind of project). Only the spreadsheet is required with a short explanation as to your recommendation as "go" or "no-go" and why.
1) Find the price of a windmill and its average power generation in kW
2) DUK WACC
3) Get a price of electricity and an expected inflation factor for electricity
4) Determine the life of the project in years (10 years is too short). Source to back this data up.
5) Installation and maintenance costs
6) Tax incentives (which can be used as either revenue or offsets to costs, depending on what is found.
References: Keep track of where information is found and make it clear where each input is found.
Attachment:- Spreadsheet For a Windmill Project.xlsx