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Can you explain in detail Case Study 2 IKEA is considering converting its all Australian stores into eco stores by installing solar system. The goal

Can you explain in detail

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Case Study 2 IKEA is considering converting its all Australian stores into eco stores by installing solar system. The goal is to generate its own electricity with excess electricity to be sold to Origin Energy. The quotation received from various solar companies showed that in the initial phase, the generated electricity would be just enough to meet the demands of stores with no excess capacity. The system will improve the carbon foot printing of the company and will reduce the cost of Carbon trading under Carbon emission trading scheme which is done every two years. The operating characteristics are as follows: Initial outlay for new equipment 20-year life no residual $ 1887,645 value Annual operating cost over 20-year life $ 67, 994 Depreciation 10% p.a. Savings in electricity due to own generation $ 995, 987 Total cost of cleaning and maintaining the system every 5 $ 8900 years 1. Calculate summary of the total cost of solar system for next 20 years 2. Should IKEA invest in this new system even if it is uneconomic age 2 of 2 360 words

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