Hartz Company is looking to start a CSR program involving installing solar panels on the roof of the building. Information on the investment is as follows:

Initial Cost of Project: $200,000

Estimated Savings Per Year 20,000

Variable Cost Per Year 4,000

Estimated Life of Project 25 years

Required

What are the net savings per year?

What are the net savings over the life of the project?

What is the estimated payback time in years? (round to two decimals)

Should the project be started? Explain your answer with amounts.

Questions	Answers
What are the net savings per year?
What are the net savings over the life of the project?
What is the estimated payback time?

Should the project be started? Support your answer with amounts.