An owner of laundromat considers installing solar panels. The installation would cost $$8,000$ today. Once installed, the solar panels are expected to bring $$9,500$ as a benefit one year from now due to savings on electricity bills. The interest rate is $9\%$ per year.

$($a$)$ What is the NPV of this opportunity? According to the NPV rule, is it worth investing? $[4$ points$]$

$($b$)$ Suppose that the owner has no cash in hand. Instead, the owner tries to finance the purchase by borrowing money from a bank with the promise to repay $$9,500$ in one year. What is the resulting cash flow from the opportunity and the bank loan combined? Present the table listing actions and cash flows today and year one. points