Technology Maturation

Green Futures operates a solar panel power generation facility in Florida. The current field generates 10 million kilowatt hours per year, however 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 15 million kilowatt hours, which will then also drop off by 1 million kilowatt hours per year. A new set of panels costs $1.5 million installed. In 2 years, an even newer panel will be available, with 18 million kilowatts output for only $1 million installed. Green futures sell electricity for $0.08 per kilowatt hour. When must the panels be upgraded? Do an analysis over the next ten years. Use a discount rate of 18 percent.