The New Business Idea Of Cindy

3116 WordsOct 12, 201413 Pages
Project 2 – Microeconomic Analysis Donald Cole ECON545 – Business Economics Date: October 12, 2014 Introduction The new business idea of Cindy is very innovative but being an intelligent businessman Cindy should look for all the broad macroeconomic conditions in the U.S economy where he is planning to begin her contracting business for installing solar panels. Cindy has not only to look for the growth prospects of solar energy equipment which will make use of solar energy to harness and convert it into other types of energy which can be used for daily chores work. Being a student of economics, I would like to give him few ideas and some broad perspectives which Cindy should be taken care of before investing such a huge amount at…show more content…
Some of the solar companies have generated good amount of revenues last year. Moreover, Federal, state and local governments offer incredible solar tax credits and rebates to encourage homeowners to switch to renewable energy to lower their energy usage and switch to solar power. The amount of the rebate subsidy varies by program, but some are generous enough to cover up to 30% of your solar power system cost. Therefore, it would be beneficial for Cindy to set up such solar installation company. The federal government allows you to deduct 30% of your solar power system costs off your federal taxes through an investment tax credit (ITC). If you do not expect to owe taxes this year, you can roll over your credit to the following year. Such huge incentives and benefits from the side of government will satisfy the social soul of Cindy as she likes to work for the society. These incentives dramatically lower the cost of a solar power system or energy efficiency project. These tax credits and rebates often make solar power less expensive than power from the utility company. We will start from the overview of the U.S economy, the current GDP volume and the contribution by each sector. The inflation rate and the unemployment rate would also have great impact on the growth and the operations of the business in U.S. With crude oil prices
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