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find the Insurance cost (A43) and Total insurance (A44) for years 1 through 30

find the Insurance cost (A43) and Total insurance (A44) for years 1 through 30

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me find the Insurance cost (A43) and Total insurance (A44) for years 1 through 30. Thank you!

8 Assumptions for Case: 9 Size, kW 10 cost per kW 11 Efficiency rating 15 kw $7,000 s per kW Total cost $ 105,000.00 18% % end-of-life salvag 15% 12 annual degradation 0.50% % value to deprecia $ 89,250.00 13 14 SIP rate 15 system rating 16 design factor $1.95 per W 12585 W Notes: 0.9 1) Electricity generation for year 1 is in cell B36 based on a formula in that cell. 17 For each succeeding year electricity generation declines by 0.5%, as stated in the case. 18 tax rate 38% of profits 2) The hurdle rate or discount rate is in cell B30 and is based on an after-tax rate, since all of the 19 tax credit 30% of system cost cash flows are adjusted for taxes. 20 3) The formula for the Solar Incentive Program (SIP) is in cell B64. 21 Electricity cost $0.17 per kWh 4) Total cash flow for the payback method is the formula in cell B71. 22 annual increase 3% 5) Number of years for payback is in cell B74. 23 6) Initially assume straight line depreciation over 5 years; in question 3) you will use accelerated depreciation based on MACRS. 24 maintainance $15 per kw 25 annual increase 2% 26 27 insurance 0.30% of total cost 28 annual increase 2% 29 30 discount rate 3.53% 31 32 33 year 34 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 35 electricity cost $0.17 $0.18 $0.18 $0.19 $0.19 $0.20 $0.20 $0.21 $0.22 $0.22 $0.23 $0.24 $0.24 $0.25 $0.26 $0.26 $0.27 $0.28 $0.29 36 electricity generation kW 37 electricity cost savings 23652 $4.020.84 38 39 40 maintainance cost per kW $15 $15.30 $15.61 $15.92 $16.24 $16.56 $16.89 $17.23 $17.57 $17.93 $18.28 $18.65 $19.02 $19.40 $19.79 $20.19 $20.59 $21.00 $21.42 41 total maint cost (based on 15kW) 42 43 insurance cost 0.30% 0.31% 0.31% 0.32% 0.32% 0.33% 0.34% 0.34% 0.35% 0.36% 0.37% 0.37% 0.38% 0.39% 0.40% 0.40% 0.41% 0.42% 0.43% 44 total insurance $ 315.00
Transcribed Image Text:8 Assumptions for Case: 9 Size, kW 10 cost per kW 11 Efficiency rating 15 kw $7,000 s per kW Total cost $ 105,000.00 18% % end-of-life salvag 15% 12 annual degradation 0.50% % value to deprecia $ 89,250.00 13 14 SIP rate 15 system rating 16 design factor $1.95 per W 12585 W Notes: 0.9 1) Electricity generation for year 1 is in cell B36 based on a formula in that cell. 17 For each succeeding year electricity generation declines by 0.5%, as stated in the case. 18 tax rate 38% of profits 2) The hurdle rate or discount rate is in cell B30 and is based on an after-tax rate, since all of the 19 tax credit 30% of system cost cash flows are adjusted for taxes. 20 3) The formula for the Solar Incentive Program (SIP) is in cell B64. 21 Electricity cost $0.17 per kWh 4) Total cash flow for the payback method is the formula in cell B71. 22 annual increase 3% 5) Number of years for payback is in cell B74. 23 6) Initially assume straight line depreciation over 5 years; in question 3) you will use accelerated depreciation based on MACRS. 24 maintainance $15 per kw 25 annual increase 2% 26 27 insurance 0.30% of total cost 28 annual increase 2% 29 30 discount rate 3.53% 31 32 33 year 34 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 35 electricity cost $0.17 $0.18 $0.18 $0.19 $0.19 $0.20 $0.20 $0.21 $0.22 $0.22 $0.23 $0.24 $0.24 $0.25 $0.26 $0.26 $0.27 $0.28 $0.29 36 electricity generation kW 37 electricity cost savings 23652 $4.020.84 38 39 40 maintainance cost per kW $15 $15.30 $15.61 $15.92 $16.24 $16.56 $16.89 $17.23 $17.57 $17.93 $18.28 $18.65 $19.02 $19.40 $19.79 $20.19 $20.59 $21.00 $21.42 41 total maint cost (based on 15kW) 42 43 insurance cost 0.30% 0.31% 0.31% 0.32% 0.32% 0.33% 0.34% 0.34% 0.35% 0.36% 0.37% 0.37% 0.38% 0.39% 0.40% 0.40% 0.41% 0.42% 0.43% 44 total insurance $ 315.00
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