EXAMPLE OF QUESTIONS LAYOUT NOT REAL NUMBERS^^

(Present Value of $1 Factor Table)

(Present Value of Annuity $1 Factor Table)

(future value of $1 factor table)

 
 
 
 
 
 
 
 

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Griffin Industries is evaluating whether to invest in solar panels to provide some of the electrical needs of its main office building in Charlotte, North Carolina. The solar panel project would cost $525,000 and would provide cost savings in its utility bills of $55,000 per year. It is anticipated that the solar panels would have a life of 20 years and would have no residual value. Read the requirements. Requirement 1. Calculate the payback period in years of the solar panel project. Determine the formula, then calculate the payback period. (Round your answer to two decimal places.) Initial investment Expected annual net cash inflow 55,000 Payback period 9.55 years Requirement 2. If the company uses a discount rate of 8%, what is the net present value of this project? (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) The net present value of the project is $ 14,990 Requirement 3. If the company has a rule that no projects will be undertaken that have a payback period of more than five years, would this investment be accepted? If not, what arguments could the energy manager make to try to obtain approval for the solar panel project? because the payback period is more than five years. No 525,000 Choose from any drop-down list and then click Check Answer = (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) = Griffin Industries is evaluating whether to invest in solar panels to provide some of the electrical needs of its main office building in Charlotte, North Carolina. The solar panel project would cost $525,000 and would provide cost savings in its utility bills of $55,000 per year. It is anticipated that the solar panels would have a life of 20 years and would have no residual value. Read the requirements. Requirement 1. Calculate the payback period in years of the solar panel project. Determine the formula, then calculate the payback period. (Round your answer to two decimal places.) Initial investment Expected annual net cash inflow 55,000 Payback period 9.55 years Requirement 2. If the company uses a discount rate of 8%, what is the net present value of this project? (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) The net present value of the project is $ 14,990 Requirement 3. If the company has a rule that no projects will be undertaken that have a payback period of more than five years, would this investment be accepted? If not, what arguments could the energy manager make to try to obtain approval for the solar panel project? because the payback period is more than five years. No 525,000 Choose from any drop-down list and then click Check Answer = (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) =

Answer rating: 100% (QA)

Question Requirement 1 Initial investment Expected annual net cash inflow 550000 55000 10 years Requirement 2 The net present value of the project is 139205 Requirement 3 No because the payback period ... View the full answer