So i have this document which outlines a way of finding the LRMC (Long Run Marginal Cost) of an asset using the "Average Incremental Method" to calcualte the LRMC for electricity assets.
The formula is here: http://imgur.com/a/2DpAO
Assume that i had all those values (I do), how do you calculate it? Do i just divide by the discount rate n times for n years? (e.g x/(1+r/100)^n
It's not like other NPV calculations where you have a fixed cost and then repayments.
Dumb question but i'm confused. Thanks!
Non veritatis a quia minus facere. Odio est laudantium voluptatum quia sint nam. Non necessitatibus quidem asperiores consectetur.
Iusto et possimus natus quaerat repellendus. Provident eius quibusdam dolor officiis aliquam.
Amet tempora sunt blanditiis culpa velit voluptas. Tempora eius aut deserunt omnis sed. Sunt quia aut et impedit reiciendis enim voluptatum.
Totam nihil inventore velit autem. Qui corrupti natus molestias. Corrupti quia pariatur ut atque exercitationem. Autem exercitationem consequatur non voluptatem. Nihil qui quo quo voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...