10422Discounted Cash Flow Analysis

Another way to determine whether a project is economically feasible is to use net present value (NPV) or internal rate of return (IRR). If the NPV is positive or if the IRR is greater than the decision maker's cost of money, then the project is considered economically feasible. For this analysis, the customer's acceptance of CHP was based on the projected IRR. A "myopic" IRR was used, i.e., the decision maker was assumed to value his yearly savings based on prevailing energy rates when the investment decision was made rather than on perfect knowledge of all future prices. Any project with an IRR above 10% provides customers with economic benefits, but acceptance levels drop off as the IRR declines to the economic floor. Simple paybacks were also calculated for comparison purposes, though these were not used in the market acceptance calculations.

Solar Stirling Engine Basics Explained

Solar Stirling Engine Basics Explained

The solar Stirling engine is progressively becoming a viable alternative to solar panels for its higher efficiency. Stirling engines might be the best way to harvest the power provided by the sun. This is an easy-to-understand explanation of how Stirling engines work, the different types, and why they are more efficient than steam engines.

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