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 $7,000 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $1,600. A new power line will cost $14,000 to install, with power costs expected to be $1,300 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 8% per year, which alternative should be selected on the basis of a future worth analysis? The future worth of solar cells is $ 17309 and that of electric line is $ 25373 Solar cells should be selected on the basis of a future worth analysis. Help Save. Compare two alternatives, A and B, on the basis of a present worth evaluation using 1 = 12% per year and a study period of 8 years. Alternative B First Cost $-15,000 $-48,000 Annual Operating cost $-11,000 $-15,000 Overhaul in Year 4 $0 $-3,900 Salvage Value $1,400 $9,600 Life 4 years 8 years points Skipped eBook The present worth of alternative Als and that of alternative Bis $ . Alternative Click to select) is selected
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