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You are considering installing solar panels on your roof, which you expect will reduce your utility bill by $1400 in the first year (assume end
You are considering installing solar panels on your roof, which you expect will reduce your utility bill by $1400 in the first year (assume end of year), with the savings growing at a 3.1% annual rate thereafter for the foreseeable future (assume perpetual). If the installation costs $14,000 after all federal and state tax credits and the appropriate discount rate is 12%, what is the NPV of this investment? Round to the nearest cent.
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