Hello,
I am not sure how they are finding this 300 euros in revenue. Does somebody know ?
thank you
Tanvi Sachdev
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Hi Tanvi,
This one is a bit tricky!
The installation cost per station is 40% of 750€ which equals 300.
The following sentence in the case is your clue:
"Total cost including installation of the station is € 750, of which WyCar would contribute 40% "
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Hello!
Couldn´t have said it better than Ian.
In a real case, you would ask for clarifications, and they would give you a clue such as “look at the data provided, in case you con obtain answers from there…”
Cheers,
Clara
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I see that the solution is – the cost per station for WyCar is € 300, just equal to the expected revenue of € 300 over five years (with a negative NPV). In addition, WyCar would be exposed to the risk of decreasing power prices but sorry I still do not understand how cost and revenue are the same
Total cost including installation of the station is € 750, of which WyCar would contribute 40% ---> for me contributing means paying right ? I am not sure to really see the point here