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A Company is looking at putting solar panels on the roof of their building and they want a very accurate expectation of the value.
A Company is looking at putting solar panels on the roof of their building and they want a very accurate expectation of the value. The annual average electric offset is 390,000 kilowatt hours/year and the price savings if $0.17/KW hr. However, not all months of the year are created equal. They assume that: January and December each contribute 5.5% of the annual total, February and November each contribute 6.5%, March and October each contribute 8%, April and September each contribute 9%, May and June 10%, July and August 11% each. Each of these contributions takes place at the END OF THE MONTH. If the offsetting electric price is constant for 3 years and they invest $110,000 at the end of June 2022, what is the NPV of this 3 year project through June 2025 with a 9% MARR?
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