July 31, 2007
The following tables calculate the revenue, expenses, and cash flow for a projected investment in a solar PV project. The tables also calculate various investment parameters.
- IRR: Internal Rate of Return
- ROE: Return on Equity (This is not the return on the total investment, but only the return on the equity portion of the investment)
- NPV: Net Present Value using the Weighted Average Cost of Capital (the weighted average of the desired return on equity and the interest on the debt)
- PI: Profitability Index (NPV/Equity invested)
Note that this is a hypothetical project and the installed cost is only an estimate as are most of the other inputs.