A Local Community Church Is Contemplating Installment of Solar Cells

question 8

Multiple Choice

A local community church is contemplating installment of solar cells on its roof and sell the access electricity to the Ontario grid via a power purchase agreement. The project requires an initial investment of $75 000 with a residual value of $2000 after 10 years. It is estimated to yield annual net returns of $15 000 for 10 years. What is the NPV of the project given a rate of return of 7%?

• A) -$31 370
• B) $32 387
• C) $31 370
• D) -$32 387
• E) $1017

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Definitions:

Public-Works Programs

Government-funded projects aimed at creating jobs and building public infrastructure like roads, schools, and hospitals.

Grand Coulee Dam

One of the largest concrete structures in the world, located on the Columbia River in Washington State, primarily built for power production and irrigation.

"Brains Trust"

A group of close advisors, academics, and economists who advised President Franklin D. Roosevelt during the New Deal.

Large Corporations

Major companies or enterprises that operate in multiple countries and have a significant impact on the economy.