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5. Individual Problems 5-2 Suppose an initial investment of $50 will return $30/year for three years (assume the $30 is received each year at the

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5. Individual Problems 5-2 Suppose an initial investment of $50 will return $30/year for three years (assume the $30 is received each year at the end of the year). At a discount rate of 30%, this investment is profitable. 6. Individual Problems 5-4 A university spent $1.7 million to install solar panels atop a parking garage. These panels will have a capacity of 400 kilowatts (KW) and have a life expectancy of 20 years. Suppose that the discount rate is 10%, 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? 2,496.04 4,992.07 6,489.69 3,993.66

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