You are planning on starting a business with a few other Mines graduates. With the recent push towards renewable energy you have decided to start a company installing solar panels on residential houses. The following information relates to your new business. The selling price per system, solar panel cost, and installation are all per units sold, where the marketing and upfront business cost are the actual cost. Please calculate the NPV @12%, ROR and PVR to make your economic decision.

Year 1 2 3 4 5 O o Solar Panel Systems Sold 20 25 30 35 40 Selling price per system 30,000 30,000 $ 30,000 $ 30,000 $ 30,000 Solar Panel cost per system (22,000) $ (22,000) $ (22,000) (22,000) (22,000) Installation cost per system (3,000) (3,000) $ (3,000) (3,000) $ (3,000) Marketing and Other Operating Costs (40,000) $ (40,000) $ (40,000) $ (40,000) $ (40,000) Upfront business startup cost (150,000)