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Course Home X P Test #3 $56463¢erwin=yes RE UP 3- Managerial Accounting - ONLINE -10338 - Winter 2022+* eva ondongo 03/23/22 3:49 PM Test: Test

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Course Home X P Test #3 $56463¢erwin=yes RE UP 3- Managerial Accounting - ONLINE -10338 - Winter 2022+* eva ondongo 03/23/22 3:49 PM Test: Test #3 Question 9 of 11 > This test: 100 point(s) possible This question: 16 point(s) possible Submit te Herschel Industries is evaluating whether to invest in solar panels to provide some of the electrical needs of its main office building in Charlotte, North Carolina. The solar panel project would cost $625,000 and would provide cost savings m (Click the icon to view the present value factor table.) in its utility bills of $70,000 per year. It is anticipated that the solar panels would have a life of 20 years and would have no (Click the icon to view the present value annuity factor table.) residual value. (Click the icon to view the future value factor table. ) Read the requirements . (Click the icon to view the future value annuity factor table. ) Requirement 1. Calculate the payback period in years of the solar panel project. Determine the formula, then calculate the payback period. (Round your answer to two decimal places.) = Payback period 1I years Requirement 2. If the company uses a discount rate of 8%, what is the net present value of this project? (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) The net present value of the project is Requirement 3. If the company has a rule that no projects will be undertaken that have a payback period of more than five years, would this investment be accepted? If not, what arguments could the energy manager make to try to obtain approval for the solar panel project? because the payback period is than five years . Select arguments the energy manager could make . Requirement 4. What would you do if you were in charge of approving capital investment proposals? (If an input field is not used in the table, leave the input field empty; do not select a label.) Time Remaining: 02:14:49 Next + G Search or type URL O O V esc

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