Question 4 Consider providing electricity to a home which needs 10 kW of power by the two options A & B given below. The
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Question 4 Consider providing electricity to a home which needs 10 kW of power by the two options A & B given below. The
Question 4 Consider providing electricity to a home which needs 10 kW of power by the two options A & B given below. The interest rate is 10%, 25 year lifetime, zero inflation, no taxes and 2% insurance. Cost item Diesel option (A) PV option (B) Capital cost $ 12000 50000 10000 1000 Operating & maintenance cost $/year Salvage value $ 2000 1000 Evaluate the two options using, a. Annual cost basis. b. Life cycle cost basis. Return on investment. c.