Format: Written submission in report format
Learning Objectives:
• To demonstrate an in-depth understanding of contemporary aspects of financial
management
Description:
Using the attached brief as guideline you will carry out an in-depth review of the financial aspects
of the Offshore Windpower business. Your report must answer the following questions:
- Assuming that site development costs are fixed (at £10,000,000) – what is the minimum
size of site to be developed assuming a finance rate of 7% and a CfD for £65/MWh? The
analysis that supports this answer must be shown. - What is the quantitative impact on project profitability if there is a residual value for the site
at the end of the CfD period? You should consider a range of scenarios including
decommissioning (a cost rather than a value) - How might such a value be calculated? You should state any assumptions about site size
and the market value of generated electricity.
The marking criteria for the report are appended. To maximise marks you should fully explain your
approach to the questions based on the course content, and consider the sensitivity of the results
to the given assumptions.
The assignment must be submitted to Myplace by 10th August 2020 in a single file.
Guideline length of report: 3,000 – 4,000 words