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 $ to install and will have a useful life of years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $ A new power line will cost $ to install, with power costs expected to be $ per year. Since the air sampling project will end in years, the salvage value of the line is considered to be zero. At an interest rate of per year, which alternative should be selected on the basis of a future worth analysis?
The future worth of solar cells is $
and that of electric line is $
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