The inflation rate on solar panel construction projects, Mechanical Engineering

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The inflation rate on solar panel construction projects

Today (year 0) a new 7-megaWatt (MW) solar panel farm is constructed at a cost of $14 million. Four years from today, a smaller 6-MW solar farm will be added to the existing farm. The inflation rate on solar panel construction projects averages 8% per year. If the cost-capacity factor is 0.85 for solar panel construction, what is the estimated capital investment for the smaller 6-MW solar farm

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