ANSWER ALL FOR 10 UPVOTES

4. ARR, NPV and Payback: Grant Industries is evaluating whether to invest in solar panels for its main office building. The project would cost $400,000 and would save the company $125,000 per year in energy costs on a cash flow basis. The solar panels have a 5 year life with no residual value and Grant depreciates solar panels on a straight line basis. The company desire a 14% return on its capital investments. A Calculate the payback period in years: (2.5 points) B What is the NPV and should Grant make the investment? (2.5points) C. What is the accounting rate of return from this planned investment? Reminder you must convert cash flow to operating income. (2.5 points) Step One: Calculate Annual Depreciation Step Two: Convert annual cash flow to OI (operating income basis)