Question
The first cost of a solar heating system (after tax credits) is $6000. Of this, area-dependent costs are $96/m^2, and the area-independent cost is $120.
The first cost of a solar heating system (after tax credits) is $6000. Of this, area-dependent costs are $96/m^2, and the area-independent cost is $120. The down payment is one-sixth of the cost. The balance is financed by a 5-year, 10%-per-year mortgage. The load is 124 GJ/yr, of which 64% is met by solar energy. Fuel is $12/GJ and the fuel inflation rate is 7% per year. The discount rate is 9% per year. Assume that maintenance and cost of parasitic power are negligible and there are no property taxes on the solar heating equipment. The owners effective tax bracket is 0.42. Assume that all payments are made at the end of the year in which they are incurred. Prepare tables of annual costs
a If resale value is 0 and Ne 10 years, what is LCS? b If resale value is 0 and N 5 years, what is LCS? c If resale value is one-third of the cost and N 5 years, what is LCS? a If resale value is 0 and Ne 10 years, what is LCS? b If resale value is 0 and N 5 years, what is LCS? c If resale value is one-third of the cost and N 5 years, what is LCSStep by Step Solution
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