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Capital Expenditures, 4 points. Green Energy Inc. is considerating a capital investment in solar panels. The procurement department has gathered the following data relevant to

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Capital Expenditures, 4 points. Green Energy Inc. is considerating a capital investment in solar panels. The procurement department has gathered the following data relevant to the investment: \begin{tabular}{|l|r|r|} \hline Initial investment & & $31,000 \\ \hline Net annual cash flows & Year 1 & 10,000 \\ \hline & Year 2 & 20,000 \\ \hline & Year 3 & 10,000 \\ \hline & Year 4 & 10,000 \\ \hline & Year 5 & 5,000 \\ \hline \end{tabular} Green's required rate of return is 14%. \begin{tabular}{|r|r|} \hline PV factor@14\%: & \\ \hline Year 1 & 0.877 \\ \hline Year 2 & 0.769 \\ \hline Year 3 & 0.675 \\ \hline Year 4 & 0.592 \\ \hline Year 5 & 0.519 \\ \hline \end{tabular} Given this data, calculate the following: \begin{tabular}{l|l|} Payback period in years & \\ NPV & \\ \hline Profitability Index & \\ Should Green Energy invest? & \\ \end{tabular}

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