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Project 1 : Solar Panel Installation The Solar Panel Installation project requires an initial investment of $ 1 5 0 , 0 0 0 .

Project 1: Solar Panel Installation
The Solar Panel Installation project requires an initial investment of $150,000. The expected annual cash
inflows are $30,000 in the first year, $40,000 in the second year, $50,000 in the third year, $60,000 in the
fourth year, and $70,000 in the fifth year. However, maintenance costs are $10,000 at the end of the
third year. Additionally, the panels have a salvage value of $20,000 at the end of the fifth year. The
discount rate for this project is 8%. Students will perform a cash flow analysis based on the given discount rate for each project within a
sensitivity range of +/-2% and Learners are expected to show all net present value calculations

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