What is the net benefit of installing the solar panels

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Reference no: EM132061056

A dormitory on campus is considering installing solar panels to help reduce its carbon footprint (carbon emissions associated with the dormitorys energy and electricity use). Each year, the solar panels result in a -ton decrease in carbon dioxide emissions. The solar panels are expected to last years (assume the first annual reduction of carbon dioxide emissions occurs in year t=1 and the last in year t=10). The panels are to be paid for in four annual installments of $ starting now. Assume a discount rate of %.

QUESTIONS

What is the net benefit of installing the solar panels?

Assuming there is a % chance that solar panel might actually last years, what is the expected net benefit of installing the solar panels?

Reference no: EM132061056

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