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1|} . Individual Problems 5-4 A university spent $1.6 million to install solar panels atop a parking garage. These panels will have a capacity of
1|} . Individual Problems 5-4 A university spent $1.6 million to install solar panels atop a parking garage. These panels will have a capacity of 900 kilowatts (kw) and have a life expectancy of 20 years. Suppose that the discount rate is 30%, 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 rst. Approximately howI many hours per year will the solar panels need to operate to enable this project to break even? 0 5,361.5? 0 2,144.53 0 3.5?3.51 If the solar panels can operate only for 4,825 hours a year at maximum, the project v break even. Continue to assume that the solar panels can operate only for 4,825 hours a year at maximum. In order for the project to be worthwhile (i.e., at least break even], the university would need a grant of at least V
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