**Transcription for Educational Website:**Nowadays it is very important to reduce one's carbon "footprint" (how much carbon we produce in our daily lifestyles). Minimizing the use of fossil fuels and instead resorting to renewable sources of energy (e.g., solar energy) are vital to a "sustainable" lifestyle and a lower carbon footprint. Let’s consider solar panels that prewarm the water fed to a conventional home water heater. The solar panels have an installed cost of $3,800, and they reduce the homeowner’s energy bill by $600 per year. The residual value of the solar panels is $798 at the end of their 10-year life. What is the annual IRR of this investment? Use the trial-and-error method starting with an initial guess of 13%.---(a) The annual IRR of this investment is [ ]%. (Round to two decimal places.)(b) If the homeowner’s MARR is 13%, is the investment economical?- ⃝ A. No- ⃝ B. Yes

IRR of a project is the discount rate which makes net present value of the project equal to zero.…

Answered: Nowadays it is very important to reduce…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A horticulturist has just set up vegetable cultivation in a greenhouse where he grows peppers and tomatoes using sustainable energy sources, electricity for lighting and thermal energy for heating. He grows x units of peppers and y units of tomatoes. The entire amount that the farmer grows is sent to the market. The cost function of the crop is described as follows equation: ?(?, ?) = 12?2 + 24?2 The lighting's capacity means that it cannot grow more than 5,000 units in total per month. a. What should be the division between the production of peppers and tomatoes to minimize cost per month with the aim of always fully utilizing the capacity of the greenhouse? What is this minimum cost per month? b. Explain the significance of calculating the Lagrange multiplier i.e. interpret and at the same time discuss how it can be used to calculate if more productive lighting is obtained in the greenhouse and the cultivation will be 5,750 units per month.
Please correct answer and don't use hend raiting
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5
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