Apply the concepts of time value of money and financial analysis to evaluate a potential investment opportunity.

Task Description:

$1.$ Investment Scenario:

You have $$20,000$ to invest in a renewable energy project that aims to install solar panels on residential properties. The project is expected to generate annual cash flows from electricity savings and government incentives. The project is expected to generate annual cash flows of $$5,000$ each year for $5$ years in total.

$2.$ Time Value of Money Analysis:

Calculate the present value of the expected annual cash flows, considering a discount rate of $8\%.$ Use the time value of money formula to determine the present value of future cash flows for the $1$st year, the $2$nd year, the $3$rd year, the $4$th year, and the $5$th year.

Please list out the entire formula and your calculation process.

$3.$ Financial Analysis Integration:

Conduct a basic financial analysis of the investment. Calculate the return on investment $($ROI$).$

Please do use the PVs of expected cash inflows that you have calculated from above in this calculation.

Please list out the entire formula and your calculation process.

Please express the final ROI as a $\%.$

$4.$ Decision$-$Making:

Determine whether the investment opportunity is favorable.

Consider factors such as the risk associated with the nature of this particular investment, the expected return compared to alternative investments, and any qualitative factors.

Submission Guidelines:

Present your calculations and analyses in a clear and organized manner $($include table $/$ chart as described above$)$

Justify your decision to proceed or not proceed with the investment based on the integrated analysis.

Please submit in PDF$.$ No hand$-$written submission will be accepted.