Consider four different solar financing options:

$1)$ cash upfront $($$$)$

$2)$ lease $($$x per month for $20$ years$)$

$3)$ power purchase agreement $($$x $/$ kwh for $20$ years$)$

$4)$ modified lease with low upfront $($$$1/$month for $1$ year$)$ and then standard lease $($$x per month for $19$ years$)$

$●$ Develop a pricing model in which the net present value of the revenue is equal from all four financing options. Assume a $5\%$ discount rate, a system that produces $10,000$ kWh per year, and a build cost of $$30,000.$ Make other assumptions as needed.

$●$ If you have used a built$-$in net present value formula in your spreadsheet, explain the algebra behind the formula &$/$or demonstrate a simple spreadsheet example.

$●$ What price would you offer for each option? Compare the prices between options and explain why the different financing options have different pricing.

$●$ Comment on your insights from this model.