Questión 4 Consider providing electricity to a home which needs 10 kW of power by the two options & B given below. The interest rate is 10%, 25 year lifetime, zero inflation, no taxes and 2 insurance. Cost item Diesel option (A) PV option (B) Capital cost $ 12000 50000
Questión 4 Consider providing electricity to a home which needs 10 kW of power by the two options & B given below. The interest rate is 10%, 25 year lifetime, zero inflation, no taxes and 2 insurance. Cost item Diesel option (A) PV option (B) Capital cost $ 12000 50000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 4
Consider providing electricity to a home which needs 10 kW of power by the two options A
& B given below. The interest rate is 10%, 25 year lifetime, zero inflation, no taxes and 2%
insurance.
Cost item
Diesel option (A)
PV option (B)
Capital cost $
12000
50000
Operating & maintenance cost
$/year
10000
1000
Salvage value $
2000
1000
Evaluate the two options using,
Annual cost basis.
а.
b.
Life cycle cost basis.
с.
Return on investment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f74577e-d171-4c08-90b0-30e1c38728db%2Ffae0aa8e-b174-415c-8bad-d9c8261792de%2Fqcx5ivd_processed.png&w=3840&q=75)
Transcribed Image Text:Question 4
Consider providing electricity to a home which needs 10 kW of power by the two options A
& B given below. The interest rate is 10%, 25 year lifetime, zero inflation, no taxes and 2%
insurance.
Cost item
Diesel option (A)
PV option (B)
Capital cost $
12000
50000
Operating & maintenance cost
$/year
10000
1000
Salvage value $
2000
1000
Evaluate the two options using,
Annual cost basis.
а.
b.
Life cycle cost basis.
с.
Return on investment.
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