Question

Today (year 0) a new 8-megaWatt (MW) solar panel farm is constructed at a cost of $15million. Four years from today, a smaller 5-MW solar farm will be added to the existing farm.The inflation rate on solar panel construction projects averages 7% per year. If the cost-capacity factor is 0.82 for solar panel construction, what is the estimated capital investment for the smaller 5-MW solar farm?

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