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A remotely located air sampling station can be powered by solar cells or by running an aboveground electric line to the site and using conventional

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A remotely located air sampling station can be powered by solar cells or by running an aboveground electric line to the site and using conventional power. Solar cells will cost $16,600 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintainance issues are expected to be $2400. A new power line will cost $31,000 to install, with power costs expected to be $1000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year and using an AW analysis (a) which alternative should be selected, and (b) what must be the first cost of the aboveground line to make the two alternatives equally attractive economically? (c) (Spreadsheet exercise) Solve both parts above using a spreadsheet and the GOAL SEEK tool. (7 Points) A remotely located air sampling station can be powered by solar cells or by running an aboveground electric line to the site and using conventional power. Solar cells will cost $16,600 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintainance issues are expected to be $2400. A new power line will cost $31,000 to install, with power costs expected to be $1000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year and using an AW analysis (a) which alternative should be selected, and (b) what must be the first cost of the aboveground line to make the two alternatives equally attractive economically? (c) (Spreadsheet exercise) Solve both parts above using a spreadsheet and the GOAL SEEK tool. (7 Points)

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