Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a company is choosing between two power options. t

A company is choosing between two power options. The first is rotating solar panels, the...

80.2K

Verified Solution

Question

Finance

A company is choosing between two power options. The first is rotating solar panels, the second is fixed. Details for each are given below.

Key inputs
Project life 30
Land cost 5000000
Land appreciation rate 1.50%
Sale price per MWh 80
Price increase per 3 years 2
First 5 year gov rebate per MWh 70
Cleaning cost in year 30 50000
Discount rate 8%
Tax 30%
Discounted capital gain tax 15%
Days per year 365
Efficiency lose yearly 0.75% per annual
Solar System
Rotating system
Installation cost per MWh 1300000
Total installed capacity 25 MWh
Effective hours per day 5.6
cost percentage of sales 10%
depreciation straight line zero salvage
Fix system
Installation cost per MWh 1100000
Total installed capacity 30 MWh
Effective hours per day 4.5
cost percentage of sales 8%
depreciation straight line zero salvage

Write two financial analyses in excel, one for each option, and state the preferred option.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Questions about Cellular Neurobiology 1. Be able to draw a growth cone and the key cytoskeletal structures...

Medical Sciences
Q

Early test flights for the space shuttle used a \"glider\" (mass of 940 kg including pilot)....

Physics
Q

A B how can a female have white eyes She would need to have two...

Biology
Q

8 Which is one example of artificial active immunization a Immune response to a pathogen...

Biology
Q

2 Let the xz plane be the boundary two transparent media between Medium 1 in...

Physics
Q

The polygons are similar The area of one polygon is given Find the area of...

Geometry
Q

4 r x 3x4 9x 2

Calculus
Q

Using the information that follows, compute the yield for August and September. Round answers to...

Accounting
Q

Calculate the ending balances on the company's balance sheet on January 31st. (Hint: Be sure...

Accounting
Q

Differential Analysis: Keep-or-Drop Decisions Managers must often decide between two or more alternatives. Differential analysis...

Accounting
Q

Part 1-10 help on ...

Accounting
Q

Suppose you purchased a stock a year ago. Today, you receive a dividend of $16...

Finance