Alvarez Manufacturing is looking at starting a CSR program Their first idea is to install solar panels on the roof to reduce their carbon footprint as well as perhaps save some money on utility costs They have generated the following information regarding the decision Initial Cost of Decision $1,000,000 Estimated Savings Per Year 125,000 Estimated Annual Cost of Program 5,000 Life of Solar Panels 10 years Interest Rate 5 00 Required Calculate the annual savings per year Calculate the total savings over the life of the plan Calculate the total net savings over the life of the plan (including the initial cost) Based on your calculations, should Martinez go ahead with the program Explain your answer Questions Answers Annual Savings Per Year Total Savings Over Life of Plan Total Net Savings Over Life of Plan Should Martinez start the plan Explain your answer with numbers

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Question: Alvarez Manufacturing is looking at starting a CSR program. Their first idea is to install solar panels on the roof to reduce their carbon footprint

Alvarez Manufacturing is looking at starting a CSR program. Their first idea is to install solar panels on the roof to reduce their carbon footprint as well as perhaps save some money on utility costs. They have generated the following information regarding the decision:

Initial Cost of Decision: $1,000,000

Estimated Savings Per Year 125,000

Estimated Annual Cost of Program 5,000

Life of Solar Panels 10 years

Interest Rate 5.00%

Required

Calculate the annual savings per year.
Calculate the total savings over the life of the plan.
Calculate the total net savings over the life of the plan (including the initial cost).
Based on your calculations, should Martinez go ahead with the program? Explain your answer.

Questions	Answers
Annual Savings Per Year
Total Savings Over Life of Plan
Total Net Savings Over Life of Plan

Should Martinez start the plan? Explain your answer with numbers.

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