A university spent $1.8 million to install
solar panels atop a parking garage. These panels will have a capacity of 500k,
have a life expectancy of 20 years and suppose the discount rate is 10%. (a) If
electricity can be purchased for cost of $0.10 per kwh, how many hours per a
year will the solar panels have to operate to make this project break even? (b)
If efficient systems operate for 2400 hours per year, would the project break
even? (c) The university is seeking a grant to cover capital cost. How big of a
grant would make this project worthwhile (to the university)?