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Installing Tesla solar panels in a house costs $18,000. It is expected that the average monthly savings will be 1,000 kWh per month. Assuming that
Installing Tesla solar panels in a house costs $18,000. It is expected that the average monthly savings will be 1,000 kWh per month. Assuming that the utility company charges 0.2 per $/kWhr.
- What is the Present worth of this investment for i=6% and N=15 years?
- A different approach could be to install energy efficient windows and enhance the insulation for $12,000, which would yield average monthly savings of 700 kWh per month. Assuming the same interest rate and time span. What is the present worth of this alternative?
- Which option would you choose? Why?
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