NB Power wants to assess the potential for a photovoltaic system to produce elec

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NB Power wants to assess the potential for a photovoltaic system to produce electricity from solar energy at a lower cost than electricity production from a thermal plant (such as coal). Unit cost of electricity, currently produced by the thermal power plant, is $0.07 per kilowatt-hour. The photovoltaic system is characterized by the following: Equipment and tools: Item Value - solar cell $3,000 - batteries $1,000 - wiring $800 - power control $100 Operating costs $100/year Batteries must be replaced every 5 years while power control - every 10 years.

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