Technology maturation green futures operates a solar panel


Technology Maturation. Green Futures operates a solar panel power generation facility in Scottsboro, Alabama. The current field generates 15 million kilowatt-hours per year, but every year production drops off by 1 million kilowatt hours, as dust and droppings accumulate on the panels. Replacing the panels right now with the newest technology panels will increase output to 25 million kilowatt-hours, which will then also drop off by 1 million kilowatt hours per year. A new set of panels costs $1.2 million installed. In two years, an even newer panel will be available, with 30 million kilowatts output for only $1 million installed. Green futures sells electricity for $0.10 per kilowatt hour. When should the panels be upgraded? Do an analysis of the next 10 years. Use a discount rate of 17%.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Technology maturation green futures operates a solar panel
Reference No:- TGS01293157

Expected delivery within 24 Hours