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Now assume an investment cost of $ 1 . 5 0 per watt for the solar panels and the various equipment needs to connect the

Now assume an investment cost of $1.50 per watt for the solar panels and the various
equipment needs to connect the panels to the electricity grid. This investment cost is in
year zero. Include the additional assumptions of: (i) the annual energy cost savings using
$0.07 per KWH for electricity price with generated KWH computed in #a occur starting
in year one with 1 to 1 net metering allowing the full benefit of energy cost savings to be
obtained, (ii) a 20-year life span for the panels, (iii) zero annual maintenance costs, and (iv)
an interest rate of 2.0% which reflects a post-tax certificate of deposit rate of interest.
Report and interpret the net present value (NPV) and benefit cost ratio (BCR) for
investment in solar panels.
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