positive NPV values #224
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How could I tune the results to give positive NPV values? any suggestion about the key parameters? |
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Replies: 2 comments 1 reply
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Increasing the NPV can be obtained by either decreasing your cost and/or increasing your revenue. Often the wellfield costs are the biggest expense so you can try decreasing your drilling cost. Increasing your revenue can be achieved by, e.g., considering a higher electricity price. You can also try playing with financial incentives (e.g., the ITC/PTC) or assuming a lower discount rate. |
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(Note my answer is complementary this one) |
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@HuihuiYangshell: @kfbeckers discussed this briefly today - of course, it is a complicated question, but in terms of parameters that have significant impact on NPV and can be intuitively adjusted, here are a few ideas to get you started:
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Increasing the NPV can be obtained by either decreasing your cost and/or increasing your revenue. Often the wellfield costs are the biggest expense so you can try decreasing your drilling cost. Increasing your revenue can be achieved by, e.g., considering a higher electricity price. You can also try playing with financial incentives (e.g., the ITC/PTC) or assuming a lower discount rate.