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 $200,000. Included in the $200,000 are estimated incidental costs of $50,000 to bring the building up to compliance to be able to accept the PV equipment. The system size is 100 Kilowatts of rated power production. The site (surface) will receive 4.91 daily average peak sun (insolation) and generate an average of 150,000 Kilowatt Hours of production each year. Once commissioned, the PV system is estimated to generate (or offset grid supplied electricity or costs) $18,000 cash inflows every year for the next twenty- five (25) years and no scrap of terminal value is assigned to the project

If the project is assigned a discount or investor’s required rate of return of 10%:
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