Question
Case 5: A homeowner is considering whether to invest in solar panels. This homeowner has gathered the following information for the town: The average cost
Case 5: A homeowner is considering whether to invest in solar panels. This homeowner has gathered the following information for the town: The average cost for residential energy is BD0.124/kWh. The government subsidizes 70% of whatever is invested by the household. Each square foot of panel produces 19.13 kWh every- year. The cost of installation per square foot of solar panel is BD93.91. The house has 350 square feet of roof space. Assume the homeowner's interest rate is 6% per year. Case 6: A commercial fitness and gym equipment's company is considering setting up a gym with a land that can be purchased for BD400,000. Construction cost for the gym equipment's and the decoration is planned to be BD250,000 and the additional annual maintenance costs for the gym are projected to be BD100,000. The one year package is BD200/person and its predicted to have 1,000 trainers each year with 30% of them going to have a massage once a month for BD15.
Case 4: A city is considering extending the runways of its municipal airport so that commercial jets can use the facilities. The land necessary for the runway extension is currently a farmland that can be purchased for BD350,000. Construction cost for the runway extension are projected to be BD600,000 and the additional annual maintenance costs for the extension are estimated to be BD22,500. If the runways are extended, a small terminal will be constructed at a cost of BD250,000. The annual operation and maintenance cost for the terminal are estimated at BD75,000. Finally, the projected increase in flight will require he addition of two air traffic controllers at an annual cost of BD100,000. solve the following and present the solution in structured manner a. Payback period b. Profitability index c. Internal Rate of Return d. Break-even Analysis (if applicable) e. Depreciation schedules (use one method only) f. PW, AW, or FW Analysis (use one method only) Case 4: A city is considering extending the runways of its municipal airport so that commercial jets can use the facilities. The land necessary for the runway extension is currently a farmland that can be purchased for BD350,000. Construction cost for the runway extension are projected to be BD600,000 and the additional annual maintenance costs for the extension are estimated to be BD22,500. If the runways are extended, a small terminal will be constructed at a cost of BD250,000. The annual operation and maintenance cost for the terminal are estimated at BD75,000. Finally, the projected increase in flight will require he addition of two air traffic controllers at an annual cost of BD100,000. solve the following and present the solution in structured manner a. Payback period b. Profitability index c. Internal Rate of Return d. Break-even Analysis (if applicable) e. Depreciation schedules (use one method only) f. PW, AW, or FW Analysis (use one method only)
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