Question: I need help to solve it as soon as possible with explanation. inancing Sustainability You decide to grab a cold drink outside Sadler. You notice





inancing Sustainability You decide to grab a cold drink outside Sadler. You notice that the Sadler Center courtyard is equipped with an interesting device - an Enerfusion Orion system. The system is a picnic table equipped with solar panels, batteries for storing energy, and charging stations. How cool! You do a bit of research and find out the following: Purchase and installation of the system costs $10.795. The system can generate 200 Watts of power per hour. Energy is priced by the kilowatt-hour (KHW), and one KWH typically costs $0.12 in Virginia. The picnic table was funded with your student fees (i.e., the Green Fee) and you're keen to analyze the financial implications of this purchase. A. (2 pts) Assume the system receives an average of 5 hours of useful sun per day to charge the system's batteries, and the system will last for 10 years. For simplicity, assume that energy cost savings are realized and compounded annually. You 're not sure about the opportunity cost of W&M's capital, but you heard that the endowment earns an average of 4% per year. Using NPV, determine whether this was a good investment. B. (2 pts) You think that W&M may have used a different capital budgeting rule to choose the project, perhaps the payback period (PP). What is the PP for the system? Name one short-coming of using the PP rule. C. (2 pts) Good news- the system is Made In the USA! Assume that the system is theerefore very durable, and it will last for 100 years. What energy price (per KWH) would make this a viable investment if the university's opportunity cost of capital was 1%? Comment on the likelihood of this change. You decide to grab a cold drink outside Sadler. You notice that the Sadler Center courtyard is equipped with an interesting device-an Enerfusion Orion system. The system is a picnic table equipped with solar panels, batteries for storing energy, and charging stations. How cool! You do a bit of research and find out the following: Purchase and installation of the system costs S10.795. The system can generate 200 Watts of power per hour. Energy is priced by the kilowatt-hour (KHW), and one KWH typically costs $0.12 in Virginia. The picnic table was funded with your student fees (i.e, the Green Fee) and you're keen to analyze the financial implications of this purchase. A. (2 pts) Assume the system receives an average of 5 hours of useful sun per day to charge the system's batteries, and the system will last for 10 years. For simplicity, assume that energy cost savings are realized and compounded anriually. You're not sure about the opportunity cost of W&M's capital, but you heard that the endowment earns an average of 4% per year. Using NPV, determine whether this was a good investment B. (2 pts) You think that W&M may have used a different capital budgeting rule to choose the project, perhaps the payback period (PP). What is the PP for the system? Name one short-coming of using the PP rule. -9.8217 24.55 PP: C. (2 pts) Good news- the system is Made In the USA! Assume that the system is therefore very durable, and it will last for 100 years. What energy price (per KWH) would make this a viable investment if the university's opportunity cost of capital was 1% ? Comment on the likelihood of this change. LA YAR B. (1 pt) You forgot to account for the value of your own time. Assume your outside option is working at SWEM for $5,000 (after-tax) per year. Make an appropriate comparison between this job and the conicessions venture and decide which is better from a financial perspective. To do this, use the EAA method. NPV EAA: Imves t EAA: C. (I pt) You call your parents to discuss your plan. You tell them that you want to become an entrepreneur. The numbers make sense. They applaud your interest in finance, but naturally, they worry you will neglect your academics in pursuit of your business. How much of a return on your savings (5310,000) would they have to offer you to make you forego your venture (assume they are okay with you working at SWEM)? inancing Sustainability You decide to grab a cold drink outside Sadler. You notice that the Sadler Center courtyard is equipped with an interesting device - an Enerfusion Orion system. The system is a picnic table equipped with solar panels, batteries for storing energy, and charging stations. How cool! You do a bit of research and find out the following: Purchase and installation of the system costs $10.795. The system can generate 200 Watts of power per hour. Energy is priced by the kilowatt-hour (KHW), and one KWH typically costs $0.12 in Virginia. The picnic table was funded with your student fees (i.e., the Green Fee) and you're keen to analyze the financial implications of this purchase. A. (2 pts) Assume the system receives an average of 5 hours of useful sun per day to charge the system's batteries, and the system will last for 10 years. For simplicity, assume that energy cost savings are realized and compounded annually. You 're not sure about the opportunity cost of W&M's capital, but you heard that the endowment earns an average of 4% per year. Using NPV, determine whether this was a good investment. B. (2 pts) You think that W&M may have used a different capital budgeting rule to choose the project, perhaps the payback period (PP). What is the PP for the system? Name one short-coming of using the PP rule. C. (2 pts) Good news- the system is Made In the USA! Assume that the system is theerefore very durable, and it will last for 100 years. What energy price (per KWH) would make this a viable investment if the university's opportunity cost of capital was 1%? Comment on the likelihood of this change. You decide to grab a cold drink outside Sadler. You notice that the Sadler Center courtyard is equipped with an interesting device-an Enerfusion Orion system. The system is a picnic table equipped with solar panels, batteries for storing energy, and charging stations. How cool! You do a bit of research and find out the following: Purchase and installation of the system costs S10.795. The system can generate 200 Watts of power per hour. Energy is priced by the kilowatt-hour (KHW), and one KWH typically costs $0.12 in Virginia. The picnic table was funded with your student fees (i.e, the Green Fee) and you're keen to analyze the financial implications of this purchase. A. (2 pts) Assume the system receives an average of 5 hours of useful sun per day to charge the system's batteries, and the system will last for 10 years. For simplicity, assume that energy cost savings are realized and compounded anriually. You're not sure about the opportunity cost of W&M's capital, but you heard that the endowment earns an average of 4% per year. Using NPV, determine whether this was a good investment B. (2 pts) You think that W&M may have used a different capital budgeting rule to choose the project, perhaps the payback period (PP). What is the PP for the system? Name one short-coming of using the PP rule. -9.8217 24.55 PP: C. (2 pts) Good news- the system is Made In the USA! Assume that the system is therefore very durable, and it will last for 100 years. What energy price (per KWH) would make this a viable investment if the university's opportunity cost of capital was 1% ? Comment on the likelihood of this change. LA YAR B. (1 pt) You forgot to account for the value of your own time. Assume your outside option is working at SWEM for $5,000 (after-tax) per year. Make an appropriate comparison between this job and the conicessions venture and decide which is better from a financial perspective. To do this, use the EAA method. NPV EAA: Imves t EAA: C. (I pt) You call your parents to discuss your plan. You tell them that you want to become an entrepreneur. The numbers make sense. They applaud your interest in finance, but naturally, they worry you will neglect your academics in pursuit of your business. How much of a return on your savings (5310,000) would they have to offer you to make you forego your venture (assume they are okay with you working at SWEM)
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