corporate finance is the course
Note: the Tolling Project background information
corporate finance is the course
Note: the Tolling Project background information pdf is written for an in-person group project. For this project, you are going to value a tolling contract on an existing power plant on the PJM interconnection.
You are only required to do a discounted cash flow analysis. Start with the ‘General Background Information Link’ under the Tolling Project Assignment. Under ‘General Notes’ please make sure to read number 3. This is important. Under the ‘Data’ heading, there are links for LMP by hour and PNODE. You are to follow the links, you want the ‘‘Total LMP Real Time’ data and you need to sort by PNODEID (Found on the other pdf titled ‘Tolling Assisnment’). You also need the link for Henry Hub (these are historical natural gas spot prices i.e. your basis).
The rest of the project information is located on the ‘Tolling Assignment’ pdf under ‘Assignments.’
*As a bonus, you may do a ‘real options’ approach, in that case you may want to read paragraph 2 on the ‘General Background Information’ pdf under the heading ‘Some General Notes’. I will post an example of the Margrabe Parameter Calculation.