How big of a grant would makethis project worthwhile

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A university spent $1.8 million to install solarpanels atop a parking garage. These panels willhave a capacity of 500 kw, 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 yearwill the solar panels have to operate to make this project break even?

b. If efficient systems operate for 2,400 hoursper year, would the project break even?

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

Reference no: EM132413327

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