Soleil Capture Corporation is investigating an investment in solar panels that will cost $2,000,000, and have a useful life of 15 years. Soleil expects to save $250,000

each year by reducing its reliance on the local Hydro facility. The company uses 10% for evaluating capital projects of all types.

Required: 1. Calculate the net present value of the investment in solar panels.

Explain to Management of Soleil Capture Corporation why they should seriously consider this investment - in a report to management explaining why this project is worthy of consideration. Specifically, identify the information they will need to justify this project to their Board of Directors.