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Your group of rural cabin owners is considering a small renewable energy project that would average 100 kW of output year-round, with an expected lifetime of 20 years. The project has a capital cost of $280,000, and a salvage value of $30,000. The community currently pays $0.05/kWh for electricity. It uses a discount rate of 7% to assess these types of investments. What is the NPV for the project? Is it viable? (Note: assume no escalation of electricity prices.)

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91422248

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