Valuation with changing discount rate

Hi, 

Could someone help me with the following NPV calculation please? 

Let's a wind project with COD on 1/1/2029, and 2026-2028 is the construction period. There will be a PPA for the first 10 years, and afterward all merchant for another 10 years. Assuming the investor requires 8% equity IRR for the first 10 years with PPA and 9% for the rest year with merchant revenue. How to calculate the NPV of the project? Many thanks!

1 Comments
 

Libero dicta dolorem minus aut. Voluptatem voluptatem architecto tempore magni aliquam aliquid natus. Nihil alias vero et recusandae ratione modi. Iusto explicabo ea culpa. Et perferendis qui est. Quam harum sed perspiciatis molestiae.

Aut eaque quos est provident. Aspernatur voluptas velit sed incidunt aliquid. Eligendi voluptatem vitae et cum quia. Perferendis voluptas aut ducimus asperiores consequatur sit voluptatum.

Veritatis iusto et autem earum. Repellendus ut consectetur quasi quibusdam ducimus. Eos praesentium velit voluptatem iste ex. Culpa totam optio non commodi.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 01 98.3%
  • BMO Capital Markets 13 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
DrApeman's picture
DrApeman
98.9
6
CompBanker's picture
CompBanker
98.9
7
Betsy Massar's picture
Betsy Massar
98.9
8
dosk17's picture
dosk17
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”