parking gar expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even? 14,375.19 O 17,250.23 10,062.63 O 18,687.75 f the solar panels can operate only for 12,938 hours a year at maximum, the project would not break even. Continue to assume that the solar panels can operate only for 12,938 hours a year at maximum.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter16: Bargaining
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A university spent $1.4 million to install solar panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life
expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kWh), and that the
marginal cost of electricity production using the solar panels is zero.
Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first.
Approximately how many hours per year will the solar panels need to operate to enable this project to break even?
14,375.19
17,250.23
O 10,062.63
18,687.75
If the solar panels can operate only for 12,938 hours a year at maximum, the project would not
Continue to assume that the solar panels can operate only for 12,938 hours a year at maximum.
break even.
In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least
Transcribed Image Text:A university spent $1.4 million to install solar panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even? 14,375.19 17,250.23 O 10,062.63 18,687.75 If the solar panels can operate only for 12,938 hours a year at maximum, the project would not Continue to assume that the solar panels can operate only for 12,938 hours a year at maximum. break even. In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least
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