Question: A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power.
A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost exist11, 500 to install and will have a useful life of 4 years with no salvage value. Annual costs for cleaning, etc. are expected to be exist900. A new power line will cost exist19, 500 to install, with power costs expected to be exist900 per year. Since the air sampling project will end in 4 years, the salvage value of the line is considered to be zero. At an interest rate of 11% per year, which alternative should be selected on the basis of a future worth analysis? The future worth of solar cells is exist and that of electric line is exist should be selected on the basis of a future worth analysis
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
