Required information A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $17,400 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,600. A new power line will cost $34,000 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. t an interest rate of 10% per year and using an AW analysis, which alternative should be selected? he annual worth of installing solar cells is $- 7915, and the annual worth of installing a new power line is $-9545

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Required information
A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the
site and using conventional power. Solar cells will cost $17,400 to install and will have a useful life of 5 years with no
salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,600. A new
power line will cost $34,000 to install, with power costs expected to be $1,000 per year. Since the air sampling project will
end in 5 years, the salvage value of the line considered to be zero.
NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
At an interest rate of 10% per year and using an AW analysis, which alternative should be selected?
The annual worth of installing solar cells is $- 7915 and the annual worth of installing a new power line is $- 9545
The alternative to be selected is installing a new power line
Transcribed Image Text:! Required information A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $17,400 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,600. A new power line will cost $34,000 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line considered to be zero. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. At an interest rate of 10% per year and using an AW analysis, which alternative should be selected? The annual worth of installing solar cells is $- 7915 and the annual worth of installing a new power line is $- 9545 The alternative to be selected is installing a new power line
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