Question
A building owner is considering installing solar roof panels on a building. The cost of installing solar panels is $23,000 + $19.50*S where S is
"A building owner is considering installing solar roof panels on a building. The cost of installing solar panels is $23,000 + $19.50*S where S is the square footage of the solar panels. There is an annual maintenance cost of $4.20 per square foot of installed solar panel. The solar panels will last 15 years, and there is no salvage value or disposal cost. The electricity usage for a single hour for the building with operating solar solar panels is E = 1000/S where E is the electricity usage in kWh (kilowatt-hour) and S is the square footage of the solar panels. The cost of electricity is $0.33 per kWh, and the solar panels will operate for 12 hours per day, 365 days per year. The building owner's MARR is 12.6%. Assuming the building owner wants to minimize the annual equivalent cost, how many square feet of solar panels should be installed? HINT: You should convert the cost of installing the solar panel to an annual cost."
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started