Company A is considering the investment of a solar power system $($Solar Panels,

Photovoltaic or PV$)$ on the roof of an existing factory. Total installation costs including

architectural, engineering, installation, testing, and commissioning are estimated to be

$$335,000.$ Included in the $$335,000$ are estimated incidental costs of $$75,000$ to bring the

building up to compliance to be able to accept the PV equipment.

The system size is $150$ Kilowatts of rated power production. The site $($surface$)$ will

receive $4\mathrm{.}91$ daily average peak sun $($insolation$)$ and generate an average of $275,000$ Kilowatt

Hours of production each year. Once commissioned, the PV system is estimated to generate $($or

offset grid supplied electricity or costs$)$ $$45,000$ cash inflows every year for the next twenty$-$

five $(25)$ years and no scrap of terminal value is assigned to the project.

The project will qualify for the $30\%$ Investment Tax$-$Credit; however, the incidental costs

of the project will not qualify. Note: for the assignment, disregard the implications of the

incidental costs. Assume the entire #$335,000$ as the initial cash outlay.

If the project is assigned a discount or investor's required rate of return of $12\%$ :

$1$ Calculate the PV Project's Payback Period.

$2$ Calculate the project's Discounted Payback Period.

$3$ Calculate the project's Net Present Value

$4$ Calculate the project's Internal Rate of Return

$5$ Calculate the projects' Profitability Index

$6$ Estimate the greenhouse gas reduction $(CO2)$ from this project: