United insurance of Hawaii is building a new facility to house its staff of 500 in downtown Honolulu. The company prides itself on a commitment to sustainability, and, in this regard , it is considering two alternatives that will reduce its demand for electricity generated using fossil fuel. The first alternative is to install solar panels on the roof of the building. The company estimates that this alternative will cost 1006000 and save the company 281,000 per year in electricity costs. The panels are expected to have a five year life. The second alternative is to utilize nanotechnology to produce a photovoltaic material that can be installed over windows. This alternative is more expensive, 1,506,000, but is expected to save 406,000 per year over its five year life. Use the NPV approach to determine the better alternative. Assume the company desires a return of 12 percent.