Answered: annual net income and NPV of solar pv

Database System Concepts

7th Edition

ISBN:9780078022159

Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Chapter1: Introduction

Section: Chapter Questions

Problem 1PE

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annual net income and NPV of solar pv

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Step 1

Capital allocation and gainful accounting methods are taken in implementation to predict the investment’s cash flows (CF) and revise them so as to obtain the return on investment.

One of the method to implement this is NPV. It is used for assessing long term returns for an investment.

NPV stands for net present value. It is used to measure absolute net return of a project. It may be expressed as follows:-

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