A university spent $1.9 million to install solar panels atop a parking garage. These panels will have a capacity of 500 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 30%, that electricity can be purchased at $0.30 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 yearwill the solar panels need to operate to enable this project to break even?

3,820.09

4,202.10

1,910.05

6,112.14

f the solar panels can operate only for 3,438 hours a year at maximum, the project (would not or would)break even.

Continue to assume that the solar panels can operate only for 3,438 hours a year at maximum.

In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least 114025.16 or 190041.94 or 304067.10 or 152033.55