ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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5-4 Solar Panel Installation A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500 kW, have a life expectancy of 20 years and suppose the discount rate is 10%. a. If electricity can be purchased for costs of $0.10 per kWh, how many hours per year will the solar panels have to operate to make this project break even? b. If efficient systems operate for 2,400 hours per year, would the project break even? c. The university is seeking a grant to cover capital costs. How big of a grant would make this project worthwhile (to the university)?

5-4 Solar Panel Installation A university spent $1.8 million to install solar panels atop a parking garage. These panels will have
a capacity of 500 kW, have a life expectancy of 20 years and suppose the discount rate is 10%. a. If electricity can be purchased
for costs of $0.10 per kWh, how many hours per year will the solar panels have to operate to make this project break even? b. If
efficient systems operate for 2,400 hours per year, would the project break even? c. The university is seeking a grant to cover
capital costs. How big of a grant would make this project worthwhile (to the university)?
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Transcribed Image Text:5-4 Solar Panel Installation A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500 kW, have a life expectancy of 20 years and suppose the discount rate is 10%. a. If electricity can be purchased for costs of $0.10 per kWh, how many hours per year will the solar panels have to operate to make this project break even? b. If efficient systems operate for 2,400 hours per year, would the project break even? c. The university is seeking a grant to cover capital costs. How big of a grant would make this project worthwhile (to the university)?
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