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I am having trouble establishing a cash in flow and out flow for this portion of my project. I feel confident that once I have

I am having trouble establishing a cash in flow and out flow for this portion of my project. I feel confident that once I have guidance on this portion, I can proceed with NPV, payback and ARROR.

SUMMARY: The average electric bill is $1000 per month with an expected increase of 10% each year over a period of 10 years without solar. The initial investment in the solar panels is $50,000. Salvage value is 10% with an expected decrease in the bill by 50% per year.

I need to re-evaluate the numbers in the top row of my table again, so I will go back to that. For now, I need to establish the cash flows, and I feel like I am completely lost with that. Everything is PRETAX as well. Thank you for ANY guidance that will put me on the right path!

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SOLAR Average Electric Bill: $1,000 per month Increase in Electric Bill Years 1-10: 10% each year -> Increase of: 0.008333333 per month Discount Rate: 8% Period: 0 1 2 3 4 5 6 7 8 9 10 Investment: $ 50,000.00 $ 46,296.30 $ 42,866.94 $ 39,691.61 $ 36,751.49 $ 34,029.16 $ 31,508.48 3 $ 29,174.52 $ 27,013.44 $ 25,012.45 $ 23,159.67 Economic Value (yrs): 10 Salvage Value: 10% Electric Bill Decrease: 50% Electric Bill Increase:| $ 1,000.00 $ 13,200.00 $13,310.00 $14,641.00 $16,105.10 $17,715.61 $19,487.17 $21,435.89 $23,579.48 $25,937.42 $28,531.17 FV

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