Technology maturation-solar panel power generation facility

Assignment Help Business Economics

Reference no: EM13852575

Technology Maturation.

Green Futures operates a solar panel power generation facility in Scottsboro, Alabama. The current field generates 12 million kilowatt-hours per year, but every year production drops off by 1 million kilowatt hours, as dust and droppings accumulate on the panels. Replacing the panels right now with the newest technology panels will increase output to 20 million kilowatt-hours, which will then also drop off by 1 million kilowatt hours per year. A new set of panels costs $1 million installed. In two years, an even newer panel will be available, with 25 million kilowatts output for only $0.9 million installed. Green futures sells electricity for $0.09 per kilowatt hour. When should the panels be upgraded? Do an analysis of the next 10 years. Use a discount rate of 17%

Reference no: EM13852575

Questions Cloud

What are the role types of officers identified by r johnson : Describe the role ambiguity that Cos faced in the 1970s and 1980s. What are the role types of officers identified by R. Johnson? Explain the two areas where probation and parole officers have discretion

About the marginal cost : New York & Co. is considering a limited edition denim jacket. Because it is so special, the first few will sell for a very high price, the next for less, and so on. A curve on a graph is used to estimate the price of each jacket. The manufacturing eq..

Find the area of the indicated region under the standard : Find the area of the indicated region under the standard normal curve.

What is the company cost of capital : What is the company cost of capital? What is the after-tax WACC, assuming that the company pays tax at a 35% rate?

Technology maturation-solar panel power generation facility : Green Futures operates a solar panel power generation facility in Scottsboro, Alabama. The current field generates 12 million kilowatt-hours per year, but every year production drops off by 1 million kilowatt hours, as dust and droppings accumulate o..

Suppose firm finds that marginal product of capital : Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the..

Elements of negligence are present : Identify whether all the elements of negligence are present and, if so, who or what entity will be sued successfully:

About the often proposed flat tax : What do you think about the often proposed "flat tax" as a better alternative than our current system allowing for credits and deductions?

Consider the salaries to be reasonable based : Ed and his wife Kathie own all of the stock of Crispin, Inc. Kathie is the president and Ed is the vice president. Kathie and Ed are paid salaries of $500,000 and $350,000, respectively, each year. They consider the salaries to be reasonable based on..

User Account

All Pages