Assuming capex has risen by 40% due to inflation, dividing $1.9 bn by 1.4 suggests a "normal" level of capex to be around $1.4 bn.
I am not suggesting that capex will fall to $1.4 bn by the time of FID but this gives an idea of the scope for potential reduction in capex.
For every $100 million reduction in capex, NPV would increase in the order of $90 million (at a discount rate of 8%) and project IRR would increase in the order of 2%.
DYOR and GLTAH.
Ann: TECH Project Feasibility Study, page-115
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