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? Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 2 0.980 0.961 0.943 0.925 0.907 0.890 0.8570.826 0.797 0.769 0.743 0.718 0.694 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.4560.410 0.370 0.335 7 0.933 0.871 0.813 0.760 0.711 0.935 0.583 0.513 0.452 0.400 0.354 0.3140.279 8 0.923 0.853 0.789 0.731 0.677 0027 0.540 0.467 0.4040.3510.305 0.266 0.233 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.1040.073 0.051 0.037 0.026 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 30 0.742 0.5520.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.0120.007 0.004 40 0.672 0.453 0.307 0.2080.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 S.) aybe GON Present Value of Annuity of $1 Periods 1% 2% 3% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.4022.322 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 5 4,853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 6 5.795 5,601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 7 6.728 6.472 6.230 6.0025.786 5.582 5,206 4.8684.564 4.288 4.039 3.812 3.605 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.9684.639 4,344 4.078 3.837 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.9464.607 4,303 4.031 10 9.471 8.983 8.530 8.1117.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 11 10.368 9.787 9.253 8.780 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.8146.194 5,6605.1974.793 4.439 13 12.13411.348 10.636 9.986 9.3948.853 7.904 7.103 6.424 5.842 5.3424.910 4.533 14 13.004 12.106 11,296 10.563 9.899 9.295 8.244 7.3676.628 6.002 5.468 5.008 4.611 15 13.865 12.849 11.938 11.11810.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.9295.353 4.870 25 22.023 19.523 17.41315.622 14.094 | 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 30 25.80822.396 19.600 17.292 15.372 13.765 11.258 | 9.4278.055 7.003 6.1775.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 5.548 4.997 Periods 1 2 3 4 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1,082 1.104 4% 1.040 1,082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 12% 1.120 1.254 1.405 1,574 1.762 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 20% 1.200 1.440 1.728 2.074 2488 3% 1.030 1.051 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 6 7 8 9 10 1.062 1.072 1.083 1.094 1.105 18% 1.180 1.392 1.643 1.939 2288 2.700 3.185 3.759 4.435 5.234 Future Value of $1 6% 8% 1.060 1.080 1.124 1.166 1.191 1.260 1.262 1.360 1.338 1.469 1.419 1.587 1.504 1.714 1.594 1.851 1.689 1.999 1.791 2.159 1.898 2332 2.012 2 518 2.133 2720 2.261 2937 2.397 3.172 3.207 4,661 4.292 6.848 5.743 10.063 10.286 21.725 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.265 1.316 1.369 1.423 1.480 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.228 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4411 5.117 5.938 6.886 7988 9.266 19.461 40.874 85.850 378.721 11 12 13 14 15 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1480 1.539 1.601 1.665 1.732 1.801 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.061 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4322 7.040 2.853 3.138 3.452 3.797 4.177 6.727 10835 17.449 45.250 6.176 7.288 8.599 10.147 11.974 27393 62.669 143.371 750,378 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95 396 237.376 1.469.772 20 25 30 40 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 Periods 1 2 3 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 5 4% 1.000 2.040 3.122 4.246 5.416 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17 293 24 297 32.030 40.568 60,402 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 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 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.845 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 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57 275 47.727 54.865 73.106 98.347 66.439 79.058 113 283 164.494 120.800 154.762 259.057 442 593 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 2.120 2.140 2.160 2.180 2.200 3.374 3.440 3.506 3.572 3.840 4.779 4.921 5.088 5.215 5.368 6.353 6.610 6.877 7.154 7.442 8.115 8.536 8.977 9.442 9.930 10.089 10.730 11.414 12.142 12.916 12.300 13.233 14.240 15.327 16.499 14.776 16.085 17.519 19.086 20.799 17.549 19.337 21.321 23.521 25.959 20.655 23.045 25.733 28.755 32.150 24.133 27.271 30.850 34.931 39.581 28.029 32.089 36.788 42.219 48.497 32.393 37.581 43.672 50.818 59.196 37.280 43.842 51.660 60.965 72.035 72.052 91.025 115 380 146.628 186.688 133.334 181.871 249.214 342.603 471.981 241.333 356.787 530.312 790,948 1.181.882 767,091 1,342.0252,360.757 4.163.2137.343.858 11 12 13 14 15 20 25 30 40 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18 292 20.024 29.778 41.646 56.085 95.026 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47,575 75,401 Monfeito Industries is evaluating whether to invest in solar panels to provide some of the electrical needs of its main office building in Charlotte, North Carolina. The solar panel project would cost $625.000 and would provide cost savings in its utility bills of $45,000 per year. It is anticipated that the solar panels would have a life of 20 years and would have no residual value. Read the requirements