A university spent $1.3 million to install solar panels atop a parking garage. These panels will have a capacity of 900 kilowatts (kW) and have a 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 th 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? OOOO 565.55 622.11 226.22 848.33

A university spent $1.3 million to install solar panels atop a parking garage. These panels will have a capacity of 900 kilowatts (kW) and have a 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 th 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? OOOO 565.55 622.11 226.22 848.33

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 6SQ

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Question

A university spent $1.3 million to install solar panels atop a parking garage. These panels will have a capacity of 900 kilowatts (kW) and have a
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?
565.55
622.11
226.22
848.33
If the solar panels can operate only for 509 hours a year at maximum, the project
Continue to assume that the solar panels can operate only for 509 hours a year at maximum.
break even.
In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least

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