Question
Flat Solar Panels: A field of flat solar panels angled to best catch the incident solar radiation is expected to yield a power of 2.6
Flat Solar Panels: A field of flat solar panels angled to best catch the incident solar radiation is expected to yield a power of 2.6 MW and will cost $87 million initially with first-year operating costs of $2 million, growing 250,000 annually. It will produce electricity worth $6.9 million the first year; this revenue stream is expected to increase at a simple interest rate of 12%, every year from there on (that is, 112% of 6.9 Mil in year 2, 124% of 6.9 Mil in Year 3, etc.).
Use an interest rate of 10% and a 20-year planning horizon to find the net present value of this project using economic logic equations.
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