Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 avrage electric offset is 400,000 kilowatt hours/year and the price savings if $0.12/KW hr. However, not all months of the year are created equal. They look at the likely solar panels output per month below based on Ohio Weatherl. If the offsetting electric price is constant for 3 years, and they invest $100,000 at the end of December 2020, what is the NPV of this 3 year project through Dec 2023 with a 6% MARR? January = 5.5% Total February = 6.5% Total March = 8.0% Total April = 9.0% Total May = 10% Total June = 10% Total July = 11% Total August = 11% Totai September = 9% Total October = 8% Total November = 6.5% Total December = 5.5% Total
Step by Step Solution
★★★★★
3.42 Rating (146 Votes )
There are 3 Steps involved in it
Step: 1
Formula The given MARR is 6 But in this case we will have to convert it in terms of ...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