IGNOU MRW 7 2026 - Briefly describe commonly used economic indicators for energy project

Question

Briefly describe commonly used economic indicators for energy project appraisal (no numerical illustration).

06 Mar 2026

Answer :

Word Count : 290

Economic indicators are essential tools in energy project appraisal as they help evaluate financial feasibility, efficiency, and long-term sustainability of projects. One of the most commonly used indicators is the Net Present Value (NPV), which measures the difference between the present value of cash inflows and outflows over the project’s lifetime. A positive NPV indicates that the project is expected to generate economic value and is therefore considered financially viable. NPV is widely used in energy planning due to its ability

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