Finicial Evaluation of Techologies Speech or Presentation

Finicial Evaluation of Techologies - Speech or Presentation Example 3. Calculate the Present Worth (that is, the Net Present Value [NPV] of total costs) for each of the technologies for the real discount rates and periods of assessment as specified in the following tables (please present results in this format): 4. Using your answers to question 3, what are the lifecycle costs of both technologies over one lifecycle of technology A at (a) a 5% real discount rate; and (b) a 20% real discount rate. Which technology is preferred on this lifecycle cost basis in each case (a) Calculate the average unit cost of the power in present value terms (in cents/kWh) supplied by each technology over a period of 20 years at a discount rate of 5%. Hint: use the answers from question 3 again to find the NPV of total costs for each technology over 20 years and then divide this amount by the total electricity supplied over this period. 5. Discuss briefly some of points emerging from this analysis of relevance to the financial comparison of sustainable energy supply options (in particular renewable) and current fossil-fuel technologies. New technologies are being developed to replace use of fossil fuels used for power generation. Studies about renewable energies are being done by the authorities if its cost will compensate its use against cost of fossil fuels. Fossil fuels like coal and gas are the most commonly used around the world for power generation. 1. In terms of technology, the average cost per kWh is much higher in Technology B which is 1.41 than 1.10 of A which means fossil energy will be more costly to produce and will be a higher price to consumer to borne. 2. Technology B gives a higher NPV than Technology A for the same 20 year period. A high positive value is an acceptable project proposition, and between two proposals, one having a higher value is