ABC can invest up to $60,000 in new equipment without depleting all the cash reserves. ABC's current average bill is $1,000 per month and expected to increase 10% per year. The company's utility bills (water, etc.) cost $500 per month and are expected to increase 5% annually.

ABC currently has no debt. ABC decided it can buy solar panels - Cost $50,000. The company estimates this will decrease the electric bill by 50% per year. The solar panels would not affect the usage of other utilities. The contractor estimates that solar panels would have a 10 year economic life and salvage equal to 10% of the original cost.

Use this information to determine the cash flows, NPV, payback, and AAROR using Excel.