Product costing and financial management
- Assuming that site development costs are fixed (at £10,000,000) – what is the minimum
size of site to be developed assuming a finance rate of 7% and a CfD for £65/MWh? The
analysis that supports this answer must be shown. - What is the quantitative impact on project profitability if there is a residual value for the site
at the end of the CfD period? You should consider a range of scenarios including
decommissioning (a cost rather than a value) - How might such a value be calculated? You should state any assumptions about site size
and the market value of generated electricity.
The marking criteria for the report are appended.