Determine the annual equivalent cash flows

Reference no: EM13180806

The Solar Energy Company is producing electricity from a solar source by using a large array of solar cells and selling the power to the local utility company. Because these cells degrade over time, thereby resulting in lower conversion efficiency and power output, the cells must be replaced every four years, which results in a particular cash flow pattern that repeats itself as follows: n = 0, -$600,000; n = 1, $400,000; n = 2, $300,000; n = 3, $200,000; and n = 4, $100,000. Determine the annual equivalent cash flows at i = 10%.

Reference no: EM13180806

Questions Cloud

Estimate the cost of the 600-mw plant : A company desires to estimate the cost of building a 600-MW fossil-fuel plant for the assembly of its new long-distance aircraft. It is known that a 200-MW plan cost $100 million 20 years ago when the approximate cost index was 400, and the cost i..

Determine qualitative research methods : Specifically, you should help Nick obtain key market insights through marketing research. In addition, you should help him to determine which countries besides the U.S. (the primary target market) should be targeted to make the most out of his new..

What are the firms short run profits : A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm's total costs are C(Q) = 50 + 10Q + 2Q2. (MC = 10 + 4Q). a. What price should the firm charge in the short run? b. Ho..

When to cut government spending as part of the solution : Because of America's large budget deficits, the government is borrowing much from foreign countries. There are experts who believe, it is not economically wise for foreigners to hold so much of U.S assets.

Determine the annual equivalent cash flows : The Solar Energy Company is producing electricity from a solar source by using a large array of solar cells and selling the power to the local utility company. Because these cells degrade over time, thereby resulting in lower conversion efficiency..

Express the firms marginal revenue as a function : The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm's marginal cost is constant at $10 per unit. a. Express the firm's marginal revenue as a function of its price. b. Determi..

Determine the profit-maximizing amounts of electricity : The second largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet the monthly demand for electricity in these counties, which is given by the inverse demand function P = 1,200 - 4Q, the..

Calculate the firms short-run average cost function : A firm producing hockey sticks has a production function given by Y= $2\sqrt{KL}$ in the short-run, the firm's amount of capital equipment is fixed at K = 100. The rental-rate of capital is $1, and the wage rate is $4.

Determine the rm''s marginal product of labor curve : Derive the rm's marginal product of labor curve. Derive the rm's average product of labor curve. If the rm has an output quota of 5,120 widgets, how many laborers must it employ in the short-run to achieve this level of production?

User Account

All Pages