A Company is looking at putting solar panels on the roof of their building and they want a very accurate expectation of the value. The annual average electric offset is 370,000 kilowatt hours/year and the price savings if $0.14/KW hr. However, not all months of the year are created equal. They assume that: January and December each contribute 5.5 % of the annual total, February and November each contribute 6.5%, March and October each contribute 8%, April and September each contribute 9%, May and June 10%, July and August 11% each. If the offsetting electric price is constant for 3 years and they invest $100,000 at the end of December 2021, what is the NPV of this 3 year project through Dec 2024 with a 6% MARR? Month Jan Feb March April May June July August September October November December % of Annual Electric Savings 5.50% 6.50% 8.00% 9.00% 10.00% 10.00% 11.00% 11.00% 9.00% 8.00% 6.50% 5.50% 85287 67998 98334 76888 Nike has a plan to boost their sales with a new product for the upcoming Football season. This will be a short duration project. They think their cash flows are as such: Expenses: 10/1/2021 of $400,000 and 11/1/2021 of $170,000 to purchase merchandise. The Net Conribution Margin will be based on the weeks and opponent. What is the Present Value of this project on October 1, 2021 assuming a 15% required rate of return? 10/1/21 11/1/21 10/9/21 10/23/21 10/30/21 11/6/21 11/13/21 11/20/21 Maryland Indiana Penn State Nebraska Purdue Michigan State $ (400,000.00) $ 170,000.00) $ 80,000.00 $ 110,000.00 $ 170,000.00 $ 75,000.00 $ 90,000.00 $ 150,000.00 A Company is looking at putting solar panels on the roof of their building and they want a very accurate expectation of the value. The annual average electric offset is 370,000 kilowatt hours/year and the price savings if $0.14/KW hr. However, not all months of the year are created equal. They assume that: January and December each contribute 5.5 % of the annual total, February and November each contribute 6.5%, March and October each contribute 8%, April and September each contribute 9%, May and June 10%, July and August 11% each. If the offsetting electric price is constant for 3 years and they invest $100,000 at the end of December 2021, what is the NPV of this 3 year project through Dec 2024 with a 6% MARR? Month Jan Feb March April May June July August September October November December % of Annual Electric Savings 5.50% 6.50% 8.00% 9.00% 10.00% 10.00% 11.00% 11.00% 9.00% 8.00% 6.50% 5.50% 85287 67998 98334 76888 Nike has a plan to boost their sales with a new product for the upcoming Football season. This will be a short duration project. They think their cash flows are as such: Expenses: 10/1/2021 of $400,000 and 11/1/2021 of $170,000 to purchase merchandise. The Net Conribution Margin will be based on the weeks and opponent. What is the Present Value of this project on October 1, 2021 assuming a 15% required rate of return? 10/1/21 11/1/21 10/9/21 10/23/21 10/30/21 11/6/21 11/13/21 11/20/21 Maryland Indiana Penn State Nebraska Purdue Michigan State $ (400,000.00) $ 170,000.00) $ 80,000.00 $ 110,000.00 $ 170,000.00 $ 75,000.00 $ 90,000.00 $ 150,000.00
