What is the present value of a series of payments received each year forever, starting with $$900$ paid one year from now and the payment growing in each subsequent year by $5\%?$ Assume a discount rate of $8\%.$

Equivalently: What amount would you have to invest today at an interest rate of $8\%$ to generate an annual payment forever, starting with $$900$ and the payment growing in each subsequent year by $5\%?$

Please round your answer to the nearest hundredth.

Assume all cash flows occur at the start of each year $($i$.$e$.,$ immediate, one year from now, two years from now,..., nine years from now$).$ Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school.

What is the net present value of the more attractive choice?

Please round your answer to the nearest dollar.

For each generator option, assume immediate installation, with purchase and operating costs in the current year and operating costs continuing for the next four years. Assume payments under both options at the start of each year $($i$.$e$.,$ immediate, one year from now,..., four years from now$).$

What is the net present value of the more attractive generator?

Please round your answer to the nearest dollar. Report the NPV of cost as a negative number.

For the local utility option, consider five years of electricity purchases. For the generator option, assume immediate installation, with purchase and operating costs in the current year and operating costs continuing for the next four years. Assume payments under both options at the start of each year $($i$.$e$.,$ immediate, one year from now,..., four years from now$).$

What is the net present value of the more attractive choice?

Please round your answer to the nearest dollar. Report the NPV of cost as a negative number.