A Company is looking at putting solar panels on the roof of their building and they...

 

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A Company is looking at putting solar panels on the roof of their building and they want a very accurate expectation of the value. The annual avérage electric offset is 400,000 kilowatt hours/year and the price savings if $0.12/KW hr. However, not all months of the year are created equal. They look at the likely solar panels output per month below based on Ohio Weatherl. If the offsetting electric price is constant for 3 years, and they invest $100,000 at the end of December 2020, what is the NPV of this 3 year project through Dec 2023 with a 6% MARR? January = 5.5% Total February = 6.5% Total March = 8.0% Total April = 9.0% Total May = 10% Total June = 10% Total July = 11% Total August = 11% Totai September = 9% Total October = 8% Total November = 6.5% Total December = 5.5% Total A Company is looking at putting solar panels on the roof of their building and they want a very accurate expectation of the value. The annual avérage electric offset is 400,000 kilowatt hours/year and the price savings if $0.12/KW hr. However, not all months of the year are created equal. They look at the likely solar panels output per month below based on Ohio Weatherl. If the offsetting electric price is constant for 3 years, and they invest $100,000 at the end of December 2020, what is the NPV of this 3 year project through Dec 2023 with a 6% MARR? January = 5.5% Total February = 6.5% Total March = 8.0% Total April = 9.0% Total May = 10% Total June = 10% Total July = 11% Total August = 11% Totai September = 9% Total October = 8% Total November = 6.5% Total December = 5.5% Total

Answer rating: 100% (QA)

Formula The given MARR is 6 But in this case we will have to convert it in terms of ... View the full answer