PV Gap

Naomi Said:

Are communities finding bones in their Porkulous?

We Answered:

don't you just love it???? and then to get money to help you have to fire so many,, how does that provide Jobs?? HA HAH HA

Joanne Said:

Where are some good places to buy 30-yr architectural shingles?

We Answered:

I have never been able to buy shingles cheaper if they are more than 100 miles away.

Shipping is going to be the issue, remember that the local guys can also load them on the roof for you.

Karen Said:

Economics Help?

We Answered:

This is a poorly worded question because there are an infinite number of answers- specifically, all real numbers on the interval (0,IRR).

Your intuition is right you need to solve for i such that the PV of the annuity = $500k. Said another way, you need the discount rate so that the NPV=0- this is the definition of the IRR.

If you are using a financial calculator:
PMT=50k, PV=-500k, pmts=20 and solve for i.

You can do this just as easily in Excel with the finanial functions or creating the TVM equations.


Any discount rate between (0, 0.0775) yields a positive NPV

Pamela Said:

How can consumers send electricity upstream?

We Answered:

You have to have a device that makes your output in phase with the power on the grid. Other than that, your power source simply hooks up on your side of the meter, when you are drawing power it comes from your source, if you need more than your source can provide it is drawn from the grid (through the meter). If you are generating more power than you consume the excess gets fed back through the meter and causes it to run backwards. At the end of the month you are only charged for any kilowatts that your power source didn't offset. If you generate more power than you use then the electric company is required by law to pay you for the power (however the amount they are required to pay is very small).