Problem
Christopher wants to add a solar photovoltaic system to his home. He plans to install a 2-kW system and has received a quote from an installer who will install this unit for $19,750. The federal government will give him a tax credit of 30% of the cost, and the state will give a 10% tax credit. State law requires the utility company to buy back all excess power generated by the system. Christopher's annual power bill is estimated to be $2000, and this will be eliminated by the solar system. Christopher expects to receive a check from the power company for $600 each year for his excess production. If the tax credits are received at EOY 1 and Christopher receives a $2000 savings plus a $600 income at the end of each year, use present worth to determine if the system pays for itself in 8 years? Assume that Christopher earns 3% on all investments.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.