代写ENGG4900 Financial Assignment

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    • 代写ENGG4900 Financial  Assignment 
    ENGG4900 Assignment 5
    Financial Modelling Exercise
    Context
    You are the feasibility study team for End Power Pty Ltd who provides custom designed electricity generation systems for off-grid and fringe-of-grid communities. You are developing a proposal for Yakandangaroo in western Queensland.
    Yakandangaroo has a population of 1,500. The main industry is grazing. The town consumes approximately 10 GW h per annum and has a peak load of 3.25 MW which occurs between 4:30 and 8 PM.
    You have been asked to develop two proposals – one based on conventional diesel fired generation and one based on Solar PV (assume fixed panel) backed with a Tesla Battery Energy Storage system (up to 5 hours’ storage at peak load). Assume the solar PV has a capacity factor of 25%.
    Project parameters:
     Commencement Date: As soon as possible.
     Investment costs1 for the power generation plant (excluding contingency) may be assumed as:
    ₋ Diesel Generation $800 per kW installed
    ₋ Solar PV $1,800 per kW installed
    ₋ Tesla Battery $400 per kWh installed (Special offer – 50% discount)
     Operating and maintenance costs1
    ₋ Diesel Generation Fixed $75 per kW installed
    Variable $0.01 per kWh sent out
    Diesel Costs 18 c per kWh sent out (Fixed, Nominal)
    ₋ Solar PV Fixed $30 per kW installed
    Variable $ Nil
     The reference date for these estimates is December 2015.
     The technologies may be assumed to be AACE2 Reference Class 2.
     The technology maturity is different for each of these technologies and so the Process Contingency will also be different.
    ₋ Diesel Generation is fully commercial with many competing vendors.
    ₋ Fixed panel solar PV (utility sale) has some limited experience at full scale.
    ₋ Tesla Energy Storage system has mainly small pilot demonstrations.
     All plant assets are depreciable for tax purposes on a straight line basis over a 12-year period.
    ₋ Sufficient land is already available and allocated for the diesel option
    ₋ An additional 25 ha of land will be required for the solar PV option at an
    estimated cost of $15,000 per hectare including fence and improvements.
     The investment decision will be made at the December board meeting this year for an
    anticipated commencement of construction in January 2017.
     Capital expenditure schedule is projected to be:
    ₋ Land (if required) must be purchased up front;
    ₋ Diesel Case 12 months’ EPC.
    ₋ Solar PV + Battery 24 months’ EPC. (35% year 1, 65% year 2)
     Start-up
    ₋ Diesel option is expected to ramp to average 60% in year 1, 85% in year 2 and
    100% in year 3 and beyond.
    ₋ Solar-Tesla option is expected to ramp to average 50% in year 1, 75% in year 2
    90% in year 3 and 100% in year 4 and beyond.
    Assumptions:
     Economic Life of the Project is 20 years from the commencement of operations.
     Residual value of any plant is offset by exactly offset by rehabilitation costs of the
    site.
     Depreciation of plant over 12 years (straight line basis)
     Tax Rate is 30%. The company cannot group its losses with any related entity so tax
    losses must be carried forward. Assume tax payable is paid in the year that it arises.
     The rate payers will pay 30 c / kWh for their electricity use (fixed for the life of the
    plant).
     The CO2 emissions intensity is 0.6 tonnes per MWh generated Diesel Plant and nil
    for the solar-battery system.
     CPI is 2.5%
     The WACC is 7% nominal after tax.
     O&M costs escalate at CPI (excl. diesel which is fixed in real terms).
     Capital costs are not expected to escalate.
     Assume all operating cashflows occur at year end.
    TASK:
    Develop a Spreadsheet Model to calculate:
     The nominal after tax cashflow for each year of the project’s life.
     The real after tax cashflow for each year of the project’s life.
     The NPV, IRR and Payback period for each project option.
    Write a 1-page recommendation letter to the CEO of Yankandangaroo outlining
     Which project you are recommending and why?
     The implications of a CO2 levy of $30 per tonne (2016 dollar equivalent), which if the green party is elected will be applied on all power generation from 2020. The CO2 will escalate at CPI.
     An estimate of the CO2 levy that would be necessary to change your recommendation to the Solar + Tesla system.
     At this CO2 price what would the electricity price need to be to meet achieve the WACC?
    Submission
     Submit as two consolidated turn-it-in assignments - 1 Page Recommendation Report + Excel Spreadsheet with the financial model(s) - on behalf of your team.
     Ensure that the individual roles for all team members are summarised in a table on the cover page of your submission.
    Assessment Criteria
    Tutorial Participation Week 9 2%
    Assignment Report 18%
    Total 20%
    Presentations – Groups M, N, O & P in each of T01, T02, T03 & T04 will present in week 12 tutorial sessions (17/18 October). This assessment task is to be completed in you ENGG4900 teams.
    1 http://www.co2crc.com.au/wp-content/uploads/2016/04/LCOE_Report_final_web.pdf
    22 COST ESTIMATE CLASSIFICATION SYSTEM – AS APPLIED IN ENGINEERING, PROCUREMENT, AND CONSTRUCTION FOR THE PROCESS INDUSTRIES TCM Framework: 7.3 – Cost Estimating and Budgeting Rev. March 1, 2016
    代写ENGG4900 Financial  Assignment