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If the system costs $88,792, how many years would it take to pay off the investment?  Assume the energy is worth $104 per day.  Assume there are 328 operational days per year (the rest are maintenance days).

Question

If the system costs 88,792,howmanyyearswouldittaketopayofftheinvestment? Assumetheenergyisworth88,792, how many years would it take to pay off the investment?  Assume the energy is worth 104 per day.  Assume there are 328 operational days per year (the rest are maintenance days).

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Solution

To calculate the number of years it would take to pay off the investment, we first need to determine how much money is made per year.

Step 1: Calculate the annual income The energy is worth 104perdayandthereare328operationaldaysperyear.So,theannualincomeis104 per day and there are 328 operational days per year. So, the annual income is 104/day * 328 days/year = $34,112/year.

Step 2: Calculate the number of years to pay off the investment The system costs 88,792.So,thenumberofyearsitwouldtaketopayofftheinvestmentis88,792. So, the number of years it would take to pay off the investment is 88,792 / $34,112/year = 2.6 years.

Therefore, it would take approximately 2.6 years to pay off the investment.

This problem has been solved

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