Calculate the irr if the power company gets a fixed feed-in tariff of $0.25/kwh, for 20 years and the salvage value of the plant after 20 years is $20 m.

0.2449 or 24.49%

Step-by-step explanation:

Calculate the IRR if the power company gets a fixed feed-in tariff of $0.25/kWh.

IRR means Internal Rate of Return is given by

Where,  FV = Final value ($20)

             PV = Present value ($0.25)

               N = 20 years

Now put the values

=

= 1.24495742 - 1

= 0.24495742

Converting in percentage :

0.24495742 × 100 = 24.49%

IRR = 0.2449 or 24.49%

option a is correct.

step-by-step explanation:

scale factor: it is used to find proportional measurements.

proportions means having the same ratio.

scale factor is the ratio of the model measurement to the actual measurement in a simplest form.

or we can say that the ratio of any two corresponding lengths in two similar geometric figures

if the scale factor is more than 1, then it is an enlargement,

if the scale factor less than 1, then it is a reduction.

given the two geometric figure:

by definition of proportions, we have