Evaluation of investment projects: A study in Turkish electricity power sector

In this study, the methods used in the preparation of feasibility studies regarding the investment projects and in the evaluation of the investment projects are explained within the framework of the literature taking into consideration the importance of fixed capital investments both for the business enterprises and for the economy of the country and the feasibility study for an hydroelectricity power plant project with an installed capacity of 76 MW is prepared. Within the scope of this feasibility study, by making the analysis of the Turkish electricity power sector, the total investment amount of the project, income and outcome of operational period, yields of depreciation, weighted avarage cost of capital are calculated and cash flow stemming from the activities and integrated financial analysis tables are prepared. The obtained data are evaluated within the framework of the methods of net present value, internal rate of return, profitability index, discounted payback period and sensitivity analysis are made and whether the Project is feasible or not is made clear.