project 1 group 4 section 5

FINANCIAL ANALYSIS OF NU

SOLAR ADRESSED BY:

PRIYANKA PANDE YAHYA ZAK MAATOUK VIMARSH SAXENA

Group 4 (Sec 5)

Why we chose this topic? Wanted to do a project which would be eco-friendly and help

reduce the carbon footprints

Northeastern university uses a vast amount of non-renewable energy to power the entire campus

As of June 2011, according to College Sustainability Report.org the overall grade for Northeastern University is A-

The Implementation of a solar panel system at the University could be substantially beneficial

Brief idea of NU SOLAR Solar panel information: 50 KW capacity, Polycrystalline and

Monocrystalline Planning horizon: 25 years Capital Sources

Alternatives considered:

MARR: 6% (calculated using WACC)

Alternative 1 Alternative 2 Alternative 3 Alternative 4

Capital Source 1 + Vendor 1




Capital Source 1

Capital Source 2

Capital Source 3

Capital Source 4

Own Equity Government Funding

Bank Loan PPA with Vendor

AHP Analysis

Factors Economic Worth Vendor Reliability Panel Quality Panel Area

Economic Worth 1 3 3 3Vendor

Reliability 0.333333333 1 3 0.333333333

Panel Quality 0.333333333 0.333333333 1 1

Panel Area 0.333333333 3 1 1

Factor Economic Worth Vendor Reliability Panel Quality Panel Area Score Weight

Economic Worth 0.5 0.409090909 0.375 0.5625 0.461647727 46

Vendor Reliability 0.166666667 0.136363636 0.375 0.0625 0.185132576 19

Panel Quality 0.166666667 0.045454545 0.125 0.1875 0.131155303 13

Panel Area 0.166666667 0.409090909 0.125 0.1875 0.222064394 22

Alternative 1 Alternative 2 Alternative 3 Alternative 4Factor Weight Rating Score Rating Score Rating Score Rating Score

Economic Worth 46 9.34 429.90 10 460 1.41 64.83 1.199 55.18

Vendor Reliability 19 7 133 7 133 10 190 9 171

Panel Quality 13 8 104 8 104 9 117 10 130Panel Area 22 7 154 9 198 8 176 10 220

Total Score 820.90 895 547.83 576.18

Alternative 1 Alternative 2 Alternative 3 Alternative 4PW $28,730.21 $30,757.65 $4,334.77 $3,689.87

FW $123,306.36 $132,007.87 $18,604.26 $15,836.43

IRR 8% 9% 9% 7%

PBP 10.81 9.8 11.16 11.35

DPBP 18.34 15.44 18.21 20.03

Weighted Factor Method

Economic Analysis

Alternative 1 Alternative 2 Alternative 3 Alternative 40

5

10

15

20

25

0%1%2%3%4%5%6%7%8%9%10%

PAYBACK ANALYSIS

PBP DPBP IRR

Alternative 1 Alternative 2 Alternative 3 Alternative 4$0.00

$5,000.00$10,000.00$15,000.00$20,000.00$25,000.00$30,000.00$35,000.00

PRESENT WORTH

Conclusion

Best alternative is purchasing panel from Vendor 2 using Govt. funding.

Advantages of NU SOLAR Increase in electricity rates in future results in more savings

Reliable and Predictable

Very low operating costs

Financing solutions for solar, with low or zero down payments

Only disadvantage is that it doesn’t work at night but battery storage to operate 24x7

THANK YOU!!

project 1 group 4 section 5

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