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My point is, if the discounted cash flow from (new panels - loan repayment)is smaller than the discounted cash flow of keeping the old panels, over a sufficient
by konschubert 3y ago
My point is, if the discounted cash flow from (new panels - loan repayment)is smaller than the discounted cash flow of keeping the old panels, over a sufficiently large future period, then it’s better to keep the old panels.
- hef19898 3y agoThose plant, utility scale I mean, are not paying loans, those are using special project investment vehicles. Discounted cashflow is not used in these cases (I know it as a way to determine the valuation of a company), things like ROI are used for utility scale projects. And guess why the vast majority is repowered with new panels...
- konschubert 3y agoI feel like the of action that makes the most economic sense should be invariant of the exact financing vehicle. (Loan or investment fund).
- hef19898 3y agoFeelings are completely irrelevant when it comes to investments in the tens to hundreds of millions. Those things are extremely well defined and unserstood, that's why people in accounting, finance and business development are crucial and have rather high paying jobs. The back of napkin maths I do for household level purchases and investments do not scale to those levels. Nor do they to company level finances. Following those practices are, obviously, no guarantee for success. Not following them on the other hand is a near guarantee for failure.