Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your operating and maintenance cost of a PV system is $100, increasing at 3% per year and inflation is 5%. The system life is 25

image text in transcribed

Your operating and maintenance cost of a PV system is $100, increasing at 3% per year and inflation is 5%. The system life is 25 years. a. What is the net present value of the O\&M? b. You are offered a fixed O\&M contract for $125 per year for the life of the system. To determine if this is financially beneficial, calculate the net present value of an annual value of $125 with an inflation rate =5% and compare to the net present value from part a. Since this is a cost that you pay, you want the lower net present value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

2. Recognize students who are helpful.

Answered: 1 week ago