Charanka Solar Park in India Reports That It Produces an Average

question 108

Multiple Choice

Charanka Solar Park in India reports that it produces an average of 16,400 kilowatt hours (kwh) of electricity per day, with a standard deviation of 2200 kwh.If this electrical output has a normal distribution, for what proportion of days would we expect the day's output to be less than 12000 kwh?

• A).0112
• B).0562
• C).0228
• D).0781
• E).1067

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Definitions:

Depreciation Tax Shield

The reduction in income tax expense realized from the ability to deduct depreciation expenses, thus lowering taxable income.

Marginal Tax Rates

The rate of tax applied to the next dollar of taxable income, which varies depending on income level and filing status in a progressive tax system.

Lease Payments

Regular payments made by a lessee to a lessor for the use of some asset.

After-Tax Lease Payment

The lease payment amount minus any tax savings resulting from deductible lease expenses.