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What is the annual profit from the solar farm

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Reference no: EM133132278

Question - You are asked to determine the feasibility of a solar farm for $5,000,000. The price per KWH is $0.80 and based on your budget your production cost is $0.50 per KWH. The farm is expected to produce 5,000,000 KWH per year with an expected life of 20 years. The annual operating and maintenance costs of the mine is $500,000.00 per year.

What is the annual profit from the solar farm?

How many years before the farm is paid off?

How many KWH are needed to pay off the investment?

What is the breakeven volume?

What is the total profit over the life of the farm?

Reference no: EM133132278

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