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Problem 1 Two types of solar panels are available to use for ASU's College Avenue Commons. Type A costs $80,000 initially and has a life
Problem 1 Two types of solar panels are available to use for ASU's College Avenue Commons. Type A costs $80,000 initially and has a life of 30 years, at the end of which it will have a salvage value of about $15,000. The energy produced by Type A is estimated to save $4,500 per year. Solar panels Type B will have a first investment of $110,000, an energy production worth $6,000 per year, and a salvage value estimated at $18,000 after its 34-year life. At an interest rate of 4% per year, use present worth to determine the better option for ASU to invest, if: a) We have to choose one of the above two options. b) There is also a Do Nothing option. (i.e. we can invest but do not have to)
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