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Northeastern is considering adding solar panels to the roof of Curry, Marino and Cabot. The combined cost of the solar panels will be $1,200,000 and

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Northeastern is considering adding solar panels to the roof of Curry, Marino and Cabot. The combined cost of the solar panels will be $1,200,000 and the will have two benefits. The first is that they will reduce Northeastern's electricity costs by $300,000 per year. Second, Northeastern will be able to sell $100,000 of surplus electricity per year. The solar panels will be fully depreciated straight-line over 10 years. You expect to be able to sell the panels at the end of seven years for $400,000. Northeastern is in the 25% tax bracket. What are the cash flows associated with this project? (i.e. What are the appropriate cash flows for a capital budgeting analysis?)

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