What is the annual worth of operation at full load

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Question - A small solar power plant is built and installed in Abbotsford, BC, at the estimated cost of $30,000. The expected annual maintenance cost of the plant is $500. The plant will generate 40-killowatt per hour. The energy that can be generated annually at full load is estimated to be 100,000 kilowatt-hours. Consider the MARR to be 9% and the salvage value of the plant to be $2,000 at the end of its estimated life of 15 years. If the value of the energy generated is $0.08 per kilowatt-hour,

a) Calculate the minimum required annual operating hours so that all the annual costs are covered.

b) What is the annual worth of operation at full load?

c) How long will it take before this plant becomes profitable?

Reference no: EM133034708

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