Investment and financing perspectives for a solar photovoltaic project

Andrea Marchioni, Carlo Alberto Magni and Davide Baschieri

MPRA Paper from University Library of Munich, Germany

Abstract: In this work we illustrate a simple logical framework serving the purpose of measuring value creation in a real-life solar photovoltaic project, funded with a lease contract, a loan contract and internal financing (i.e., withdrawal from liquid assets). We use the projected accounting data to compute the value created. We assess the project from both an investment perspective (operating assets and liquid assets) and a financing perspective (debt and equity). Furthermore, focusing on value creation for equityholders, we calculate the expected contribution on shareholders’ wealth increase of operating and financing activity. In particular, we highlight the role of the distribution policy in financial modeling by describing the strict logical connections between estimated data and financial decisions.

Keywords: photovoltaic solar energy; project evaluation; net present value; distribution policy (search for similar items in EconPapers)
JEL-codes: C60 C63 C67 G00 G30 G31 G32 G35 M41 O13 (search for similar items in EconPapers)
Date: 2020-11-12
New Economics Papers: this item is included in nep-cfn and nep-ene
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https://mpra.ub.uni-muenchen.de/107374/1/MPRA_paper_107374.pdf original version (application/pdf)

Related works:
Chapter: Investment and Financing Perspectives for a Solar Photovoltaic Project (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:107374

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