Question: I need help to solve it as soon as possible. Thanks You decide to grab a cold drink outside Sadler. You notice that the Sadler

I need help to solve it as soon as possible. Thanks  I need help to solve it as soon as possible. Thanks
You decide to grab a cold drink outside Sadler. You notice that
the Sadler Center courtyard is equipped with an interesting device - an

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 (KH), and one KWH typically costs $0.12 in Virginia The picnic table was funded with your student fees (ie, 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 carns an average of 4% per year. Using NPV, determine whether this was a good investment ID 49 MPV = -.02 ps) You think that WAM 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 male PP, -9.8217 = 24.55 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 KWHD) would make this a viable investment if the university's opportunity cos of capital was 1%? Comment on the likelihood of this change tyas. AD

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