A family is considering installing a household solar energy system. The system has an installed cost of $1,450 and they reduce the homeowner's energy bill by $310 per year. The residual value of the solar panels is $400 at the end of their 5-year life. What is the annual effective IRR of this investment? Assume the family has a MARR of 10%. Please use the interpolation method and only fill in the number of your calculated result in the blank, e.g., if the result is 7.537%, fill in "7.54"; also keep 2 digits after the decimal point.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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A family is considering installing a household solar energy system. The system has an installed cost of $1,450
and they reduce the homeowner's energy bill by $310 per year. The residual value of the solar panels is $400
at the end of their 5-year life. What is the annual effective IRR of this investment? Assume the family has a
MARR of 10%. Please use the interpolation method and only fill in the number of your calculated
result in the blank, e.g., if the result is 7.537%, fill in "7.54"; also keep 2 digits after the decimal point.
Transcribed Image Text:A family is considering installing a household solar energy system. The system has an installed cost of $1,450 and they reduce the homeowner's energy bill by $310 per year. The residual value of the solar panels is $400 at the end of their 5-year life. What is the annual effective IRR of this investment? Assume the family has a MARR of 10%. Please use the interpolation method and only fill in the number of your calculated result in the blank, e.g., if the result is 7.537%, fill in "7.54"; also keep 2 digits after the decimal point.
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