An in generating solar cells. The new material is expected to have a longer life

Question

An in generating solar cells. The new material is expected to have a longer life, and it is believed to have a 40% efficiency rate, which s nearly twice that of standard silicon solar cells. The useful life of a tel by using the new solar cells. What rate of return could be realized if an extra investment now of $900,000 would result in extra revenues of $450,000 in year 11, $500,000 in year 12, and amounts increasing by $50,000 per year through year 15? alloy developed at Sandia National Laboratory is said to have potential uses in electricity- tions satellite could be extended from 10 to 15 years 10 points The rate of return that could be realized was %. o e a KB@

Explanation / Answer

Year

additional annual revenue

1

450000

2

500000

3

550000

4

600000

5

650000

additional average revenue = sum of revenue / no of years = 2750000/5

550000

additional investment

900000

rate of return = average rate of return/initial investment

(550000/900000)*100

61.11%

Year

additional annual revenue

1

450000

2

500000

3

550000

4

600000

5

650000

additional average revenue = sum of revenue / no of years = 2750000/5

550000

additional investment

900000

rate of return = average rate of return/initial investment

(550000/900000)*100

61.11%

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