(a)Jane is considering installing a PV system. She would like to find out whether it would be economic to install this system on her house roof. After some research, she has the following data:

Determine the net present value (NPV) of the project, as well as the levelised cost of electricity from the PV system. Should she go ahead and install the system?

(b) Is the internal rate of return greater or less than 10%? Show how you arrive at the answer.

- The company 'BestSolar', offers a complete, installed system for $12,000, with a guarantee of 20 years for all system components including the inverter. - The 'average' PV system efficiency over the life of the system is estimated to be 9.2\% - Annual maintenance costs are estimated at \$100. - Annual electricity consumption is 3300kW.h - The interest rate is 7% - The state she lives in has a feed in tariff for PV electricity of 50c/kW.h (gross)