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Economics

Solar and conventional alternatives are available for providing energy at a remote space research site. The costs associated with each alternative are shown below. Use the B/C method to determine which should be selected at a discount rate of 0.75% per month over a 6-year study period.

Conventional Solar

Initial cost, $ 2,000,000 4,500,000

M&O cost, $/month 50,000 10,000

Salvage value, $ 0 150,000

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9447461

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