QUESTION 7 Which has the greatest NPV assuming a 25 year planning horizon and MARR = 12%? Install...

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Electrical Engineering

QUESTION 7
Which has the greatest NPV assuming a 25 year planning horizonand MARR = 12%?
Install a $20,000 solar system that will last 25 years, andgenerate 38,000 kWh/year at $0.10/kWh.
Install a $25,000 Ground-Source Heat pump that will last 50years and save $3,500/year.
Both options has equal NPV
Not possible to be calculated

Answer & Explanation Solved by verified expert

3.8 Ratings (512 Votes)

We have given the values MARR 12 NPV in 25 years of both NPV for both are same PLAN A Total installation cost 20000 Generating 38000 kwhyear 10kwh 3800year income PLAN B See Answer

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		Install a $20,000 solar system that will last 25 years, andgenerate 38,000 kWh/year at $0.10/kWh.
		Install a $25,000 Ground-Source Heat pump that will last 50years and save $3,500/year.
		Both options has equal NPV
		Not possible to be calculated