how to do the exerciseExercise $1$

As an engineer who has taken the economic analysis course, you are considering installing

solar panels on your new plant but want to compare with the option

a connection to the Hydro$-$Qu$$bec network.

Solar panel option: The material and installation costs $$250,000.$

The DPA rate of the panels is $30\%.$ The required panels and batteries,

require annual maintenance costing $$5,000.$

Hydro$-$Qu$$bec option: The initial connection with Hydro$-$Qu$$bec $($installation of a

pole, transformer and connection$)$ will cost you $$50,000($considered as

non$-$depreciated expense in this case$).$ Annual electricity costs will be

$$60,000($for simplicity, assume payment at the end of the year$).$

Throughout the analysis period, the marginal tax rate will remain at

$40\%$ and the TRAM, at $15\%.$

After how many years do solar panels become beneficial?