How big of a grant would make the project worthwhile

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Reference no: EM132207476

Question: A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500kw, have a life expectancy of 20 years and suppose the discount rate is 10%.

a. If electricity can be purchased for costs of $0.10 per kwh, how many hours per year will the solar panels have to operate to make this project break even? (Use break-even point analysis to determine answer)

b. If efficient systems operate for 2400 hours per year, would the project break even?

c. The university is seeking a grants to cover capital cost. How big of a grant would make this project worthwhile (to the university)?

Reference no: EM132207476

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