panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, 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? O4,791.73 6,708.42 O 3,354.21 O 5,750.08 If the solar panels can operate only for 4,313 hours a year at maximum,, the project would not break even Continue to assume that the solar panels can operate only for 4,313 hours à 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, $223,793.26 $139,870.79 $83,922.47

panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, 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? O4,791.73 6,708.42 O 3,354.21 O 5,750.08 If the solar panels can operate only for 4,313 hours a year at maximum,, the project would not break even Continue to assume that the solar panels can operate only for 4,313 hours à 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, $223,793.26 $139,870.79 $83,922.47

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A university spent $1.4 million to install solar panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life
expectancy of 20 years. Suppose that the discount rate is 20%, 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?
4,791.73
O 6,708.42
3,354.21
5,750.08
If the solar panels can operate only for 4,313 hours a year at maximum,, the project would not
Continue to assume that the solar panels can operate only for 4,313 hours à 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
$223,793.26
$139,870.79
$83,922.47

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