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? O 5,089.96 O 3,132.28 O 1,566.14 O 3,915.35 v break even. If the solar panels can operate only for 3,524 hours a year at maximum, the project Continue to assume that the solar panels can operate only for 3,524 hours a year at maximum. 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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6. Individual Problems 5-4
A university spent $2 million to install solar panels atop a parking garage. These panels will have a capacity of 300 kilowatts (kW) and have a life
expectancy of 20 years. Suppose that the discount rate is 10%, that electricity can be purchased at $0.20 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?
O 5,089.96
O 3,132.28
O 1,566.14
O 3,915.35
If the solar panels can operate only for 3,524 hours a year at maximum, the project
break even.
Continue to assume that the solar panels can operate only for 3,524 hours a year at maximum.
In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least
Transcribed Image Text:6. Individual Problems 5-4 A university spent $2 million to install solar panels atop a parking garage. These panels will have a capacity of 300 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 10%, that electricity can be purchased at $0.20 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? O 5,089.96 O 3,132.28 O 1,566.14 O 3,915.35 If the solar panels can operate only for 3,524 hours a year at maximum, the project break even. Continue to assume that the solar panels can operate only for 3,524 hours a year at maximum. 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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