Crowdly

The

present value of future cash flows

If I would like to receive a cash flow of 100 USD three

years from now, how much money do I need to invest today? Assume a discount

rate of 4%.

104.00 USD

100.00 USD

96.15 USD

88.90 USD

Nominal interest rates

Select

the true statements.

The nominal interest includes both risk and

inflationary premiums.

The real interest rate includes both risk and

inflationary premiums.

The nominal interest rate should be used to understand

the true cost of borrowing.

Discounting

In the context of "time value of money" and

investment projects, the term "discounting" is often used. Select the

correct definition of discounting.

Discounting converts all future cash flows into their

present value.

Discounting converts cash flows from one currency into

another (foreign) currency.

Discounting converts cash flows from the past into

future values.

Discounting converts all cash flows into their future

value (at different times in the future).

Economic feasibility studies

Economic feasibility

studies assess various costs, revenues, and metrics which fit into broad

categories. Assign the following examples/tools to the correct category.

Estimation of operating

costs

Estimation of upfront investment

costs

Valuation concepts and

Capital Budgeting

Estimation of potential

revenue

Scenario

analysis

Scenario analysis is another method to analyse

risks in RE (and other type of) projects.

Which of the following aspects apply to the

scenario analysis of risk assessment?

Select one or more:

The result requires

additional comments on input parameters in order to be understood.

The methodology does not

provide a good basis for decision-making.

Typically, three

scenarios are derived (a base case, a best case and a worst case)

It is based on the

subjective creation of discrete scenarios.

Simulation method using Monte Carlo

Which of the following aspects apply to the

simulation method using Monte Carlo of risk assessment?

Select one or more:

It can be carried out

with pen and paper.

It provides a good basis

for decision-making.

It is more difficult to

understand and requires extensive explanation.

Interdependencies

between input variables are not considered

Risk reduction measures

Different risk reduction

measures can be used in RE projects like in many other projects. Link the risk

reduction measure with the corresponding definition.

Minimising the time for

construction and planning

The ability to carry out

a project at different locations or points in time

Splitting larger

projects into smaller, independent sub-projects

Replacing a potentially

large but uncertain negative effect by another, now certain, much smaller

negative effect

Sensitivity

analysis

Which of the following

aspects apply to the sensitivity analysis of risk assessment?

It is relatively simple

to apply.

It is not easy to understand;

long-term expertise is required.

It does not assess the

probability of the assessed events.

It incorporates

interdependencies between input variables.

Types of risks in RE projects

In the context of RE

projects, which risk category do the following specific risks belong to?

Construction delays:

Lower than expected wind

speed:

Tsunami:

Defective wind turbine

generators:

Tightening of

environmental impact rules: