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[The following information applies to the questions displayed below.] A company is investing in a solar panel system to reduce its electricity costs. The system

[The following information applies to the questions displayed below.] A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $106,274.60 today. The system is expected to generate net cash flows of $11,019 per year for the next 35 years. The investment has zero salvage value.

The company requires an 9% return on its investments. 1-a. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Should the project be accepted?

Chart Values are Based on:
n =
i = %
Cash Flow Select Chart Amount x PV Factor = Present Value
Annual cash flow = $0.00
Net present value

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