A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 10%, that electricity can be purchased at $0.30 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even? O 4,228.58 O 1,409.53 O 3,523.82 O 5,285.73 If the solar panels can operate only for 3,171 hours a year at maximum, the project would not break even. Continue to assume that the solar panels can operate only for 3,171 hours a year at maximum. In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least
A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 10%, that electricity can be purchased at $0.30 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even? O 4,228.58 O 1,409.53 O 3,523.82 O 5,285.73 If the solar panels can operate only for 3,171 hours a year at maximum, the project would not break even. Continue to assume that the solar panels can operate only for 3,171 hours a year at maximum. In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter16: Bargaining
Section: Chapter Questions
Problem 2MC
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