Grant Industries is evaluating whether to invest in solar panels for its main office building. The project would cost $300,000 and would save the company $75,000 per year in energy costs on a cash flow basis. The solar panels have a 5-year life with no residual value and Grant depreciates solar panels on a straight-line basis. The company desires a 14% return on its capital investments.

Calculate the payback period in years?

What is the NPV and should Grant make this investment?

What is the ARR from this planned investment?

What is the approximate IRR on this investment?