LED lighting Option Lifespan Initial cost Annual costs Annual savings A 4 years R32,000 R1,000 R18,000 B 3 years R20,000 R1,500 R16,500 C 5 years R35,000 R1,000 R19,000 Solar water heaters Option Lifespan Initial cost Annual costs Annual savings A 8 years R200,000 R5,000 R60,000 B 10 years R260,000 R2,000 R60,000 C 12 years R300,000 R2,000 R75,000 Question 1 Which option for LED lighting has the shortest simple payback period? Show your calculations for all three options in your answer to motivate your choice. Only consider the initial costs in your calculations. Start writing here: Question 2 2.1 What is the net present value (NPV) of each LED lighting option if a discount rate of 10% is chosen? Start writing here: 2.2 Which option has the most profitable NPV? Start writing here: 2.3 Once you have performed the NPV calculations, compare the results with the simple payback results from the previous question. Which option would you select overall based on this comparison? Briefly motivate your answer. (Max. 100 words) Start writing here: Question 3 Which solar water heater option would be the best investment, based on simple payback period only? Show your calculations for each option to motivate your answer. Only consider the initial costs in your calculations. Start writing here: Question 4 Determine the NPV and IRR for each solar water heater option. For NPV, use a discount rate of 15%. You are advised to use Excel or an online calculator, such as CalculateStuff, to perform these calculations. As such, you are not expected to show calculations. Start writing here: Question 5 When ranking the profitability of energy-efficiency projects, it is best to use a combination of financial analysis methods. Which solar water heater option is the most financially viable, based on the calculations in Questions 3 and 4? Be sure to comment on simple payback, NPV, and IRR in your answer. (Max. 100 words; bullet point format is allowed) Start writing here:.