Answered

Westonci.ca is the Q&A platform that connects you with experts who provide accurate and detailed answers. Our platform offers a seamless experience for finding reliable answers from a network of experienced professionals. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $15,000 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $1,500. A new power line will cost $13,000 to install, with power costs expected to be $1,200 per year. Since the air sampling project will end in 4 years, the salvage value of the line is considered to be zero. At an interest rate of 14% per year, which alternative should be selected on the basis of a future worth analysis?

Sagot :

madicuf0301

Answer:

Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it will be cheaper to run an electric line than to use solar cells. So running an electric line should be the answer.

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.