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Cost-Benefit Analysis I can install solar panels on my roof that will produce 8 MWhr of electricity in a year for $20,000. Each MWhr of
Cost-Benefit Analysis I can install solar panels on my roof that will produce 8 MWhr of electricity in a year for $20,000. Each MWhr of electricity is worth $200 today, but electricity costs are expected to increase 2% a year. I can take a loan from the builder for 5% a year for 10 years. My time horizon is 10 years. Is this a good idea? Justify your answer. Suppose the panels last 20 years. Is it a good idea over 20 years? Justify your answer. Suppose each MWhr of solar electricity has a global GHG benefit of $100. What is the CBA over 10 years and 20 years now
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