d points Save Answer A building owner is considering installing solar roof panel
ID: 2793232 • Letter: D
Question
d points Save Answer A building owner is considering installing solar roof panels on a building. The cost of installing solar panels is $13,000+$21.10'S where S is the square footage of the solar panels. There is an annual maintenance cost of $5.70 per square foot of installed solar panel. The solar panels will last 22 years, and there is no salvage value or disposal cost. The electricity usage for a single hour for the building with operating solar solar panels is E is the electricity usage in kWh (kilowatt-hour) and S is the square footage of the solar panels. The cost of electricity is $0.23 per kWh, and the solar where panels will operate for 12 hours per day, 365 days per year. The building owner's MARR is 99%. Assuming the building owner wants to minimize the annual equivalent cost, how many square feet of solar panels should be installed? HINT: You should convert the cost of installing the solar panel to an annual cost.Explanation / Answer
Cost of installation: 13000 + 21.10*S
Maintainence cost: 5.70*S
Life of panels: 22 years
Annual equivalent cost (AEC): (13000+21.10*S)/22+5.70*S = 590.91+6.66*S
Electricity sales: 1000/S*0.23*12*365 = 1007400/S
MARR: 9% implies minimum return on annual cost is 1.09 times the cost
Total sales should be atleast equivalent to 1.09* annual equivalent cost = 644.09+7.26*S
To minimize AEC, solve the following 644.09+7.26*S = 1007400/S
7.26*S2+644.09*S-1007400=0
This shall give you one negative and one positive solution, since square feet is only going to be positive,
S= 330.77 square feet.
Hope this clarifies the question for you.
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