Answer Case Study Exercises 2, 3, and 5 Please show full work and the formulas and logic used. Thanks

Background Three engineers who worked for Mitchell Engineering, a company specializing in public housing development,went to lunch together several times a week. Over time they decided to work on solar energy production ideas. After a lot of weekend time over several years, they had designed and developed a prototype of a low-cost, scalable solar energy plant for use in multifamily dwellings on the low end and medium-sized manufacturing facilities on the upper end. For residential applications, the collector could be mounted along side a TV dish and be p to track the sun. The generator and additional equipment are installed in a closet-sized area in an apartment or on a floor for multiple-apartment supply. The system serves as a supplement to the clectricity provided by the local power company. After some 6 months of testing, it was agreed that the system was ready to market and reliably state that an electricity bill in hell rises could be reduced by appoxmatl 40% e month. is was great news for low-income dwellers on government subsidy that are required to pay their own utility bill rogrammed Information With a hefty bank loan and $200,000 of their own capital, they were able to install demonstration sites in three cities in the sunbelt. Net cash flo after all expenses, loan repayment, and taxes or the irst 4 years was acceptable; $55,000 at the end of the first year, increasing by 5% thereafter. A business acquaintance introduced them to a potential buyer of the patent rights and current subscriber base with an estimated $5 trio decided to not sell at this time. They wanted to stay in the business for a while longer to develop some enhancement ideas and to see how much revenue may increase over the next few years each year During the next year, the fifth year of the partnership, the engineer who had received the patents upon which the collector and generator designs were based became very displeased with the partnering arrangements and left the trio to go into partnership with an international firm in the energy business. With new research and development funds and the patent rights, a competing design was soon on the market and took much of the business away from the original two developers. Net cash flow dropped to $40,000 in year 5 and continued to decrease by $5000 per year. Another offer to sell in year 8 was presented, but it was only for $100,000 net cash. This was considered too much of a loss, so the two owners did not accept. Instead, they decided to put $200,000 more of their own savings into the company to develop additional applications in the housing market It is now 12 years since the system was publicly launched. With increased advertising and development, net cash flow has been positive the last 4 years, starting at $5000 in year9 and increasing by $5000 each year until now