1. Conduct a cost-benefit analysis for household solar panel investment in Louisiana and Michigan respectively for a period of 25 years (from year 0 to year 24). Assume the upfront cost incurs on January 1st of year 0. The time period for this analysis starts from January 1st of year 0, and ends on December 31st of year 24. Use a discount rate of 5%. Feel free to use Excel or other software for your calculation. 1) Present your CBA results. Make sure you include net present values and benefit cost ratios. (40 pts) 2) Based on your results, is the household solar panel investment decision economically wise in the two states? (Hint: make your recommendations based on net present values and benefit cost ratios) (10pts) 3) What are the policy implications? (Hint: should the government provide financial subsidies to residential households to stimulate solar growth in these two states? Why?) (10 pts) Solar panels Fixed upfront cost ($) Annual maintenance cost ($) System Size (kW) Standard system | 18,188 100 | Average sun hours per day (hours) State Louisiana Michigan Electric rate ($/kWh) 0.10 0.25