examples ( with brief explanation and at least four hundred words each explanation thank you.)

5-4 Solar Panel Installation

A university spent $1.8 million to install solar panels atop a parking garage. These panels will

have a capacity of 500 kw, have a life expectancy of 20 years and suppose the discount rate is 10%.

A.If electricity can be purchased for costs of $0.10 per kwh, how many hours per year

will the solar panels have to operate to make this project break even?

B. If efficient systems operate for 2,400 hours per year, would the project break even?

C. The university is seeking a grant to cover capital costs. How big of a grant would make

this project worthwhile (to the university)?

5-5 Toy Trucks

Last year, a toy manufacturer introduced a new toy truck that was a huge success. The

company invested $2.5 million for a plastic injection molding machine (which can be sold for

$2.0 million) and $100,000 in plastic injection molds specifically for the toy (not valuable to anyone else). Labor and the cost of materials necessary to make each truck is about $3. This year, a competitor has developed a similar toy that has significantly

reduced demand for the toy truck. Now, the original manufacturer is deciding whether they

should continue production of the toy truck. If the estimated demand is 100,000 trucks, what is

the break-even price for the toy truck? Should you shut down?