A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $16,800 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,900. A new power line will cost $24,500 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. 4 At an interest rate of 10% per year and using an AW analysis, which alternative should be selected? The annual worth of installing solar cells is $- a new power line is $-1 The alternative to be selected is (Click to select) and the annual worth of installing
A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $16,800 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,900. A new power line will cost $24,500 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. 4 At an interest rate of 10% per year and using an AW analysis, which alternative should be selected? The annual worth of installing solar cells is $- a new power line is $-1 The alternative to be selected is (Click to select) and the annual worth of installing
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Required information
A remotely located air sampling station can be powered by solar cells or
by running an above ground electric line to the site and using
conventional power. Solar cells will cost $16,800 to install and will have a
useful life of 5 years with no salvage value. Annual costs for inspection,
cleaning, and other maintenance issues are expected to be $2,900. A
new power line will cost $24,500 to install, with power costs expected to
be $1,000 per year. Since the air sampling project will end in 5 years, the
salvage value of the line is considered to be zero.
NOTE: This is a multi-part question. Once an answer is submitted, you will
be unable to return to this part.
At an interest rate of 10% per year and using an AW analysis, which alternative should be
selected?
The annual worth of installing solar cells is $-
a new power line is $-
The alternative to be selected is (Click to select)
and the annual worth of installing](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9dc225c5-c5e5-42eb-a67c-c643b0ce2794%2Fcb6c748c-ce23-406b-9a07-badd9cdfd0d6%2Fguazcuki_processed.jpeg&w=3840&q=75)
Transcribed Image Text:S
Required information
A remotely located air sampling station can be powered by solar cells or
by running an above ground electric line to the site and using
conventional power. Solar cells will cost $16,800 to install and will have a
useful life of 5 years with no salvage value. Annual costs for inspection,
cleaning, and other maintenance issues are expected to be $2,900. A
new power line will cost $24,500 to install, with power costs expected to
be $1,000 per year. Since the air sampling project will end in 5 years, the
salvage value of the line is considered to be zero.
NOTE: This is a multi-part question. Once an answer is submitted, you will
be unable to return to this part.
At an interest rate of 10% per year and using an AW analysis, which alternative should be
selected?
The annual worth of installing solar cells is $-
a new power line is $-
The alternative to be selected is (Click to select)
and the annual worth of installing
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