Solar panels can be used to prewarm the water fed to a conventional home water heater. The solar panels have an instaled cost of $2,920, and they reduce the homeowner's energy bil by $29 per month. The residual value of the solar panels is negligible at the end of their 12year e What is the annual offective IRR of this mvestment? The annual effective IRR of this investment is (Round to two decimal places)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Solar panels can be used to prewarm the water fed to a conventional home water heater. The solar panels have an installed cost of $2.920, and they reduce the homeowner's energy
bil by $29 per month. The residual value of the solar panels is negigible at the end of their 12-year ito. What is the annual effectivo IRR of this investment?
The annual effective IRR of this investment is
6. (Round to two decimal places.)
Transcribed Image Text:Solar panels can be used to prewarm the water fed to a conventional home water heater. The solar panels have an installed cost of $2.920, and they reduce the homeowner's energy bil by $29 per month. The residual value of the solar panels is negigible at the end of their 12-year ito. What is the annual effectivo IRR of this investment? The annual effective IRR of this investment is 6. (Round to two decimal places.)
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