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Ethics Problem Diane Dennison is a financlal analyst worung for a large chain of discount retal slores. Her compary is locking at the possibilicy of

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Ethics Problem Diane Dennison is a financlal analyst worung for a large chain of discount retal slores. Her compary is locking at the possibilicy of replacing the existing fluorescont lights in all of its stores with LED lights. The main advantage of making ths switch is that the LED lights are much more efficient and cost less to operate. In addition, LED lights last much longet and wil have to be replaced ater ten years, whereas the existing lights have to be replaced after fivo yoars. Of course, making this change wil require a large investment to purchase new LED lights and to pay for the labor of switching out fens of thousands of bulbs. Dane plans to use a 10-year horizon to analyze this proposal, figuring that changes to lighting lechnology will eventually make Ehis investment obsolete. Diane's trend and coworker, David, has analyzed another energy-kaving investment opporturity that imolves roplaching outdoor lighting with solar-powered fixtures in a few of the cornpanys stores. David also used a 10 -year horren to conduct his analysis. Cash flow forecasts for each project are given here. . The company uses a 10% discount rate to analyze capital budgobing proposals. a. What is the NPV of oach irwestment? Which investment (f either) should the company undertake? b. David approaches Diane for a fawor. David says that the solar lightng project is a pet project of his boss, and David realy wants to get the project approved to curry favor with his boss. He suggests to Diane that they roll thair two projects into a single proposal. The cash flows for this combined project would simply equal the sum of the two individual projects, Cakculate the NPV of the combined project Does it appear to be worth doing? Would you recornmend investing in the combined project? c. What is the ethical issue that Diane faces? Is any harm done if she does the faver for David as he asks? a. The NPV of the LED project is 5 (Round to the nearest dollar.) Data table (Click on the icon here o in order to copy the contents of the data table below into a spreadsheet)

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