1 Requirements 1. Calculate the payback period in years of the solar panel project. 2. If the company uses a discount rate of 10%, what is the net present value of this project? 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? What would you do if you were in charge of approving capital investment proposals? Present Value of $1 Periods 1% 896 | 1096 | 1296 | 1496 | 1696 | 1896 | 2096 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.8770.8620.8470.833 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.7430.7180.694 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.6410.6090.579 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.5520.5160.482 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.5670.519 0.4760.4370.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.4100.3700.335 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.3140.279 8 0.923 0.8530.789 0.731 0.677 0.627 0.540 0.467 0.404 0.3510.3050.2660.233 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.2630.2250.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.2270.1910.162 11 0.896 0.804 0.722 0.650 0.5850.527 0.429 0.350 0.287 0.237 0.195 0.1620.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.1370.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.1160.093 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.0990.078 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.0840.065 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.0370.026 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.0070.004 296 3% 4% 5% 6% Present Value of Annuity of $1 Periods | 896 | 1096 | 1296 | 1496 | 1696 | 1896 | 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.8770.8620.8470.833 2 1.970 1.942 1.913 1.8861.859 1.833 1.783 1.736 1.690 1.6471.60515661.528 3 2.941 28842829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.2462.1742.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.0372.914 2.7982.6902.589 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.2743.1272.991 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.6853.4983.326 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.0393.8123.605 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.3444.0783.837 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.6074.3034.031 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.4944.192 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.6564.327 12 11.255 10.575 9.9549.385 8.863 8.384 7.536 6.814 6.1945.660 5.1974.7934.439 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.4245.842 5.342 4.9104.533 14 13.004 12.106 11.296 10.563 9.899 9.2958.244 7.367 6.628 6.002 5.4685.0084.611 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.5755.0924.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7469 6.623 5.929 5.3534.870 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.0975.4674.948 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.1775.5174.979 1% 2% 3% 4% 5% 6% Future Value of $1 1.060 60633157925 10024821811228 10301040 1030 1.093 469 14641405 13001.160 1.469 1.180 1.392 13313601331 12541.14 2.195 2.502 1.200 1.440 1.728 1.020 1.050 1.103 1.125 21338 1.040 1611157414821346 1.949 2.358 1.020 1.158 1.405 1.170 1.217 1.262 1.464 1.689 1.939 1.276 1.340 1.407 1.477 1.762 2.100 2436 3.278 3.707 4.411 4226 5.117 1.159 1094117212301265 1.094 259427732853 2826 2700 2.853 1.062 1.072 1.587 1.772 1974 1.149 1083 95 344 1267 1.305 1.344 1.504 50 512358 3106 1.689 2.700 3.185 3.759 4.435 2.986 3.583 4.300 5.160 1.369 2773 3252 1.999 2.159 2332 313363 66 9266 2518 1.219 1.480 1.629 116 1268 6.732 1.138 12 2513801 20792261 2720 313347 5.474 1898 2.012 1.710 6.176 4.818 12 13 8.916 8.59910.699 1.294 1.469 1.665 1.886 1.980 2937 3.172 4.177 3.797 4.887 1149 12941426 1539 7.988 10.14712839 9.2661197415407 2.397 3.207 4.661 5.74310.063 17.449 29.960 50.95085.850 143.371 237.376 15 1.346 1.558 1.220 1.486 1.282 1.348 1.489 6.727 9.646 20 25 30 40 13.743 19461 27.39338.338 6.848 10.835 17.000 26.462 40.874 62.669 95.396 3.386 2427 3243 4322 7.040 2.208 3.262 0.286 21.72545.259 93.051 188.884 378.721 750.378 1,469.772 Future Value of Annuity of $1 Periods 12% 1.000 2.120 3.374 4.779 20% 1.000 3% 1.000 2.030 3.091 5% 000 20603246 466353 3.153 5.526 690 1.000 2.060 8% 1.000 10% 1.000 2.100 14% 1.000 2.140 3.440 16% 1.000 2.160 3.506 18% 1.000 2.180 1.000 2010 1.000 2.020 1.000 2.040 3.122 4.246 3.246 3.640 4.060 4.122 4.184 5.204 6.308 7.434 8.583 9.75510.159 10.583 11.027 11.4912488 13.579 14.77616.085 17.519 19.086 20.799 7.336 8.923 6.152 7.214 8.286 9.369 10.46210.950 11.464 12.006 12.578 13.181 14487 15.93717.549 19.337 21.32123.521 25.959 11.56712.169 12.808 13.486 14.207 14.972 16.645 18.53120.655 23.045 25.73328.755 32.150 12.683 13.412 14.192 15.026 15.917 16.870 18977 21.384 24.133 27.271 30.850 34.931 39.581 13.80914.680 15.618 16.62717.713 18.882 21.495 24.52328.029 32.089 36.786 42219 48.497 14.94715.974 17.086 18.292 19.599 21.015 24.215 27.97532 393 37.581 43.67250818 59.196 16.09717.293 18.599 20.02421.579 23.276 27.152 31.77237.280 43.842 51.66060.965 72.035 22.01924.297 26.870 29.77833.066 36.786 45.762 57.27572052 91.025 115.380146.628 186.688 28.24332030 36.459 41.646 47.727 54.865 73.106 98.347133.334 181.871 249.214342.603 471.981 34.78540.56847.575 56.085 66.439 79.058113.283 164.494 241.333 356.787 530.312790.948 1,181.882 48.88660.402 75.401 95.026 120.800 154.762259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 6.468 6.633 7.898 9.214 6.975 8.394 9.8970.63711436 12.30013.233 14.240 15.327 16.499 7.716 9.487 10.089 10.730 11.414 12.14212.916 8.115 8.536 8.977 9.442 8.142 9.549 8.892 12 13 15 20 25 30 40 Jeren Industries is evaluating whether to invest in solar panels to provide some of the electrical needs of its main office building in Charleston, South Carolina. The solar panel project would cost $550,000 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 15 years and Click the icon to view the present value annuity factor table.) would have no residual value Click the icon to view the present value actor able (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) 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.) - Payback period Choose from any drop-down list and then click Check Answer. parts remaining Clear All