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Question: Chris Cook studied the situation described in Problem below and decided that the solar system will not require the $180 of maintenance every 4 years. Chris believes future replacements of either the conventional electric water heater, or the solar water heater system can be made at the same costs and useful lives as the initial installation. Based on a 10% interest rate, what must be the useful life of the solar system to make it no more expensive than the electric water heater system?
Problem: Tom Sewel has gathered data on the relative costs of a solar water heater system and a conventional electric water heater. The data are based on statistics for a mid-American city and assume that during cloudy days an electric heating element in the solar heating system will provide the necessary heat. The installed cost of a conventional electric water tank and heater is $200. A family of four uses an average of 300 liters of hot water a day, which takes $230 of electricity per year. The glass-lined tank has a 20-year guarantee. This is probably a reasonable estimate of its actual useful life. The installed cost of two solar panels, a small electric pump, and a storage tank with auxiliary electric heating element is $1400. It will cost $60 a year for electricity to run the pump and heat water on cloudy days. The solar system will require $180 of maintenance work every 4 years. Neither the conventional electric water heater nor the solar water heater will have any salvage value at the end of its useful life. Using Tom's data, what is the payback period if the solar water heater system is installed, rather than the conventional electric water heater?
In the paper, focus on the history of the company, the type of services they provide, where they are based out of (hubs), what type of aircraft they use, etc. In other words, paint a simple picture of the airline for someone who may not have ever hea..
Identify two goods that have elastic demand and two (2) goods that have inelastic demand, that you have purchased during the last month, and explain the main reason why you identified them as such.
Examine the decisions of a small business owner. Since microeconomics is the study of individual households, firms, and government, we will take a closer look at the operations of a franchise firm.
Your salary in year 1 is $30,000. You deposit 10% at the end of each year in a savings account that earns 6% interest. Your salary increases by 5% per year.
Jane Chang is making plans for a summer vacation. She will take $1000 with her in the form of traveler's checks.
What is the importance of budgets for organizations in today's global economy? What budgetary skills do you need to possess to be an effective manager and what will you do to improve those skills?
Analyze the banking industry from a global and ethical posture. Be specific as to which ethical posture you should be taking.
Presentation to be presented to the CEO's executive committee that addresses how your chosen organization determines what quantity of labor to demand and what events could shift the demand and supply of that labor.
The MacBurger Company, a chain of fast-food restaurants, expects to earn $200 million after taxes for the current year - Calculate the cost of equity capital to given firm
what impact will an unanticipated increase in the money supply have on the real interest rate real output and
High Flyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow High Flyer Airlines to give passengers more comfort.
Consider a market in which the elasticity of demand is -4, the elasticity of supply is 2, the initial price is $50 and the initial quantity is 1000 units. After an increase in the wage paid by producers, the new equilibrium price is $55. What is the ..
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