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A university spent $1.3 million to install solar panels atop a parking garage. These panels will
have a capacity of 500 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the
discount rate is 10%, that electricity can be purchased at $0.10 per kilowatt-hour (kWh), and that
the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to
think of the present value of operating the solar panels for 1

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