RNE 33.3% 0.2¢ renu energy limited

extremely negative article, page-31

  1. 96 Posts.
    It is good to hear that your figures are higher than the ones I quoted :) I am assuming that each year the value of $214 million will decrease slightly in terms of present day dollars. The amount it decreases each year is the discount rate. I assume that sometime soon GDY will get $214 million per year forever from a 500 MW power plant. Obviously this does not include the likely possibility that after generating 500 MW of capacity, GDY will continue to increase its generating capacity, so my approach is simplistic and conservative.

    If r(t) is the discounted revenue at time t, and d is the discount rate, the discounting approach suggests that r(t) = r(0) * exp( - d t). Integrating from time T (the start time) to infinity we get that the total revenue is equal to r(T)/d, which is the same as r(0) * exp( - d * T) / d.
 
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