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You are considering buying solar photovoltaic panels for your home. Your current monthly energy bills average $125. Your panels

You are considering buying solar photovoltaic panels for your home. Your current monthly energy bills average $125. Your panels

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q) You are considering buying solar photovoltaic panels for your home.

  • Your current monthly energy bills average $125.
  • Your panels are expected to be serviceable for 30 years.
  • The panels would cost $18,000 upfront.
  • The panels would supply all the electricity you need.
  • There is a 26% federal tax break this year for renewable energy purchases.
  1. What is the IRR (write as a percentage)? ________________
  2. Is it a good idea (Yes or No, based on IRR)? _____________

********************** PLEASE ROUND ROI TO ONE (1) DECIMAL POINT ONLY!*******************

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