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2. Deciding whether to buy a Tesla Powerwall Tesla sells the Powerwall home battery package for $7050. A homeowner with a time-of-day electric rate could charge such a battery at night (when electricity is inexpensive) and use the electricity during the day (when electricity is expensive). Based on a New England time-of-day rate, and assuming that the full battery storage potential is used 365 days per year, a homeowner could save $788 per year on electricity. Assume that the Tesla Powerwall lasts for 12 years and has no annual maintenance costs a. Calculate the B/C ratio, net present value, and internal rate of return, and state the conclusion, if a homeowner's discount rate is 2%. b. Calculate the B/C ratio, net present value, and internal rate of return, and state the conclusion, if a homeowner's discount rate is 10%. c. Describe at least two other factors that might affect your decision (factors that are not reflected in the financial metrics).

2. Deciding whether to buy a Tesla Powerwall Tesla sells the Powerwall home battery package for $7050. A homeowner with a time-of-day electric rate could charge such a battery at night (when electricity is inexpensive) and use the electricity during the day (when electricity is expensive). Based on a New England time-of-day rate, and assuming that the full battery storage potential is used 365 days per year, a homeowner could save $788 per year on electricity. Assume that the Tesla Powerwall lasts for 12 years and has no annual maintenance costs a. Calculate the B/C ratio, net present value, and internal rate of return, and state the conclusion, if a homeowner's discount rate is 2%. b. Calculate the B/C ratio, net present value, and internal rate of return, and state the conclusion, if a homeowner's discount rate is 10%. c. Describe at least two other factors that might affect your decision (factors that are not reflected in the financial metrics).

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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2. Deciding whether to buy a Tesla Powerwall Tesla sells the Powerwall home battery package for $7050. A homeowner with a time-of-day electric rate could charge such a battery at night (when electricity is inexpensive) and use the electricity during the day (when electricity is expensive). Based on a New England time-of-day rate, and assuming that the full battery storage potential is used 365 days per year, a homeowner could save $788 per year on electricity. Assume that the Tesla Powerwall lasts for 12 years and has no annual maintenance costs a. Calculate the B/C ratio, net present value, and internal rate of return, and state the conclusion, if a homeowner's discount rate is 2%. b. Calculate the B/C ratio, net present value, and internal rate of return, and state the conclusion, if a homeowner's discount rate is 10%. c. Describe at least two other factors that might affect your decision (factors that are not reflected in the financial metrics).
Transcribed Image Text:2. Deciding whether to buy a Tesla Powerwall Tesla sells the Powerwall home battery package for $7050. A homeowner with a time-of-day electric rate could charge such a battery at night (when electricity is inexpensive) and use the electricity during the day (when electricity is expensive). Based on a New England time-of-day rate, and assuming that the full battery storage potential is used 365 days per year, a homeowner could save $788 per year on electricity. Assume that the Tesla Powerwall lasts for 12 years and has no annual maintenance costs a. Calculate the B/C ratio, net present value, and internal rate of return, and state the conclusion, if a homeowner's discount rate is 2%. b. Calculate the B/C ratio, net present value, and internal rate of return, and state the conclusion, if a homeowner's discount rate is 10%. c. Describe at least two other factors that might affect your decision (factors that are not reflected in the financial metrics).
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