4 (30p). You need to evaluate the financial feasibility of a small photovoltaic system project for your customer. The system is rated at 5 kW, cost $20,000 and you expect it to operate with capacity factor of 0.3 for 20 years. If the cost of electricity is 14c/kwh and your discount rate is 10%, answer the following: a) How much money you will save per year on electrical bill after installing the system? b) What is the NPV? c) Do you need a tax incentive for your project be profitable? If yes, how much? d) What is NPV and IRR if the tax incentive is $6,000? e) If the capital cost is the only expense, what is the annualized price of electricity from the PV system with and without tax incentive, and how it compares with the current utility price? What is the price of electricity from PV if instead of paying cash, you take a 20 year loan at 9%