Hi there,
I'm having trouble undertanding the "Idea 2: Cooperation with energy provider" calculation. Calculating the cost is straight forward, however I don't fully understand the NPV calculation for the revenues.
Could someone walk me through the math?
Thanks
Hi Anto, thank you very much for walking me through the logic. Yes, that makes sense to me now. Appreciate the help.
Hi Antonello, thank you for the answer. I don't understand why 15000 is divided by 12 in the formula. Can you explain please :) ?
Thanks Annaelle. Talking about yearly revenue we do not have to divide by 12
What it the 3.2 cycles/week for? Since it is not used in this question. I'm just trying to understand what it actually is.
How do we know NPV will be negative? Wouldn't that depend on the interest rate? So we just know that it will be less than the €300 and therefore lower than the cost. So perhaps, you meant negative profit?