need help on this question's requirments. really stuck

E12-23A (similar to) Question Help Jeren Industries is evaluating whether to invest in solar panels to provide some of the electrical needs of its main office building in Boulder, Colorado The solar panel project would cost $550,000 and would provide cost savings in its utility bills of $35,000 per year. It is anticipated that the solar panels would have a life of 15 years and would have no residual value. Read the requirements (Click the icon to view the present value factor table) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table) Requirement 1. Calculate the payback period in years of the solar panel project. Determine the formula, then calculate the payback period. (Round your answer to two decimal places) Payback period - X * Requirements 1. Calculate the payback period in years of the solar panel project. 2. If the company uses a discount rate of 10%, what is the net present value of this project? 3. If the company has a rule that no projects will be undertaken that have a payback period of more than five years, would this investment be accepted? If not, what arguments could the energy manager make to try to obtain approval for the solar panel project? 4. What would you do if you were in charge of approving capital investment proposals? CH Print Done 5 Temaining Clear All Check Answer O Bi e a 56 (Click the icon to view the present value factor table.) e some of the electrical needs of its main office building in muld provide cost savings in its utility bills of $25.000 per and would h Reference Present Value of $1 el project answer to t Periods 1 2 3 4 5 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 6 7 8 9 10 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0351 0.308 0270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0 661 0.642 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0505 0481 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.001 0.135 0.112 0.093 0.078 0.065 0.554 0.478 20 25 30 40 0.820 0.780 0.742 0.672 0673 0.610 0.562 0.453 0.456 0.375 0.308 0.208 0.377 0.295 0.231 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0.099 0 046 0.149 0.092 0.057 0.022 0.104 0.059 0.033 0.011 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 0.026 0.010 0.004 0.001 0.412 0.307 Print Done ) Bie a 56 its utility bills of $35,000 per al value (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) i Reference - X aces Periods 1 2 3 4 5 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2322 2.914 3.433 16% 0.862 1 605 2.246 2.798 3 274 18% 0.847 1 566 2.174 2.690 3.127 20% 0.833 1.528 2106 2589 2.991 6 7 8 9 10 Present Value of Annuity of 51 1% 2% 3% 5% 6% 8% 10% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 2941 2 884 2.829 2.775 2.723 2673 2577 2487 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 4.853 4.713 4.580 4.452 4.329 4212 3.993 3.791 5.795 5.601 5.417 5.242 5.076 4917 4.623 4.355 6.728 6.472 6.230 6.002 5.786 5582 5 206 4.868 7 652 7325 7.020 6.733 6.463 6 210 5.747 5.335 8.566 8.162 7.786 7.435 7 108 6.802 6.247 5.759 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 10.368 9.787 9.253 8.760 8.306 7 887 7 139 6 495 11.255 10.575,9.954 9385 8863 8.384 7536 6.814 12. 134 11.348 10 635 9.986 9.394 8.853 7.904 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 13.865 12.849 11.938 11.118 10 380 9.712 8.559 7.606 18 046 16.351 14 877 13 590 12.462 11.470 9 818 8.514 22.023 19.523 17.413 15.622 14 094 12.783 10.675 9.077 25.808 22.396 19.600 17.292 15 372 13.765 11 258 9.427 32 835 27.355 23.115 19.793 17 159 15.046 11.925 9.779 4.111 4.564 4.968 5328 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3812 4.078 4.303 4.494 3.326 3 605 3.837 4.031 4.192 11 12 13 14 15 5.938 6.194 6.424 6.628 6 811 5.453 5.660 5.842 6.002 6 142 5.029 5.197 5.342 5468 5.575 4.656 4793 4.910 5 008 5092 4.327 4.439 4.533 4.611 4.675 20 25 30 40 7.469 7.843 8 055 8 244 6 623 6.873 7.003 7 105 5.929 6 097 6.177 6.233 5.353 5.467 5 517 5.548 4.870 4948 4979 4.997 Print Done a o 56 ld provide cost savings in its utility bills of $35,000 per nd would have no residual value (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) A Reference -X Periods 1% 1 1010 1.020 2% 1020 1.040 1.051 1.082 1104 3% 1.030 1061 1093 1.126 1.159 2 3 4 5 4% 1.040 1082 1.125 1.170 1217 Future Value of $1 6% 8% 1.060 1.080 1124 1166 1.260 1.262 1.360 1 338 1.469 10% 1.100 1210 1.331 1464 1.611 12% 1.120 1 254 1.405 1.574 1.762 5% 1.050 1 103 1 158 1216 1276 1.340 1.407 1.477 1.551 1.629 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1346 1.561 1.811 2.100 18% 1.180 1 392 1.643 1939 2288 20% 1 200 1.440 1728 2074 2488 1030 1191 1.041 1.051 6 7 8 9 10 1.062 1,072 1 083 1,094 1.105 1 126 1.149 1.172 1 195 1 219 1.194 1230 1 267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1 851 1.999 2 159 1.772 1.949 2.144 2.358 2.594 1.974 2211 2.476 2.773 3.106 2.195 2 502 2853 3.252 3.707 2.436 2826 3.278 3.803 4.411 2700 3.185 3.759 4.435 5234 2988 3.583 4300 5.160 6 192 11 12 13 14 15 1.243 1.268 1.294 1.319 1.346 1384 1428 1469 1513 1558 1710 1.796 1.886 1980 2.079 1.898 2012 2.133 2 261 2397 2332 2518 2.720 2.937 3.172 3479 3.896 4 363 4887 5.474 1.539 1.601 1.865 1732 1 801 2191 2666 3243 4 801 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1 348 1.489 2853 3.138 3452 3.797 4.177 6.727 10 835 17:449 45.259 5.117 5.936 6.886 7.988 9.266 7.430 8.916 10.699 12839 15 407 6.176 7 288 8.599 10.147 11.974 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50 950 188 884 20 25 30 40 1.486 1.641 1.811 2208 1.808 2094 2427 3 262 2653 3386 4322 7040 3207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 9.646 17.000 29.960 93.051 19.461 40874 85.850 378.721 27.393 62 669 143 371 750 378 38 338 95 396 237376 1.469.772 e a Oo 56 life of 15 years and would have no residual value (Click the icon to view the present value annuity factor table.) click the icon to be a factor table Reference Periods 1 2 3 4 5 1% 1000 2010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5204 3% 1.000 2030 3.091 4.184 5.309 4% 1.000 2040 3.122 4248 5.416 12% 1.000 2120 3.374 4.779 6.353 6 7 6.152 7214 8.286 9369 10462 8 308 7434 8.583 6.468 7.662 8.892 10.159 11.484 8. 115 10.089 12.300 14.778 17.549 9 10 11027 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1000 1000 2050 2.060 2080 2.100 3.153 3.184 3246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6 975 7336 7.716 8.142 8 394 8.923 9.487 9549 9 897 10.637 11.438 11.491 12.488 13.579 12578 13.181 14 487 15.937 14 207 14 972 16.645 18.531 15.917 16 870 18.977 21.384 17 713 18 882 21.495 24.523 19 599 21.015 24 215 27.975 21579 23 276 27 152 31.772 33 086 36.786 45.762 57 275 47727 54.865 73.106 98 347 66 439 79 058 113.283 164 494 120.800 154.762 259.057 442 593 9755 10.950 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18 292 20.024 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.140 2. 160 2 180 2 200 3.440 3.506 3.572 3.640 4921 5056 5215 5368 6.610 6.877 7.154 7.442 8.536 8 977 9.442 9.930 10.730 11.414 12.142 12.918 13 233 14.240 15.327 16.499 16.085 17519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25733 28.755 32 150 27 271 30.850 34.931 39.581 32089 36.786 42219 48.497 37581 43.672 50.818 59 196 43.842 51.660 60 965 72.035 91 025 115 380 145.628 186 688 181 871 249 214 342 603 471 981 356.787 530 312 790.948 1,181.882 1,342 025 2360 757 4.163.213 7343 858 11 12 13 14 15 11 567 12 683 13 809 14.947 16.097 12.169 13.412 14680 15 974 17.293 12 808 14192 15618 17 086 18 599 20.655 24.133 28.029 32.393 37 280 72052 133 334 241.333 767 091 20 25 30 40 22.019 28 243 34785 48 886 24297 32030 40.568 10.402 26 870 36.459 47 575 75 401 29.778 41.646 56 095 95 026 Print Done O BI e E a 2 8 56