In southern California a photovoltaic (PV) system for a certain home costs $28,000 for parts and installation. This 6.1 kW system requires 350 ft of rooftop space and has an estimated life of 20 years. a. If this PV system saves $200 each month in electricity expenses, what is the simple payback period in months? b. If the market value of the PV system is negligible, what is the system's IRR?

In southern California a photovoltaic (PV) system for a certain home costs $28,000 for parts and installation. This 6.1 kW system requires 350 ft of rooftop space and has an estimated life of 20 years. a. If this PV system saves $200 each month in electricity expenses, what is the simple payback period in months? b. If the market value of the PV system is negligible, what is the system's IRR?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 10P

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