Question
You will conduct a CBA using the Benefit-to-Cost Ratio method for determining if a 5kW solar system is a justifiable investment. For the calculation, you
You will conduct a CBA using the Benefit-to-Cost Ratio method for determining if a 5kW solar system is a justifiable investment. For the calculation, you will use costs, benefits and disbenefits that you select to include in the analysis. If you need to monetize indirect costs and/or benefits (converted to $), the conversion must use some documented source, and not some random guess of yours. Any online calculator you use is fine, but you must include it in the report. In addition to the CBA, apply all the relevant subjects that you have learned throughout the semester in this course (cost estimation, evaluating a single project, comparison among alternatives, taxes and depreciation, inflation and deflation, replacement analysis, breakeven and sensitivity analyses) to this project. - Defend the costs, benefits and disbenefits you choose to include in the analysis - Include the methods for converting indirect costs, benefits and disbenefits to dollars - Explain your discount rate - Explain your analysis period - Clearly state all assumptions you make for the project - Determine the most satisfactory alternative - Supply a commentary about the method used in the analysis, and why you used that method - Interpret the results (discussion on what the results mean)
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