Young Industries is evaluating investing in solar panels to provide some of the electrical needs of its main (Click the icon to view the present value annuity table.) office building in Buffalo, New York. The solar panel project would cost $600,000 and would provide cost savings in its utility bills of $75,000 per year. It is anticipated that the solar panels would have a life of 20 E (Click the icon to view the present value factor table.) years and would have no residual value. (Click the icon to view the future value annuity table.) Read the requirements. (Click the icon to view the future value factor table.) . . . . . Requirement 1. Calculate the payback period in years of the solar panel project. Determine the formula, then calculate the payback period. (Round your answer to two decimal places.) = Payback period X Requirements 1. Calculate the payback period in years of the solar panel project. 2. If the company uses a discount rate of 12%, what is the net present value of this project? 3. If the company has a rule that no projects will be undertaken that have a payback period of more than five years, would this investment be accepted? If not, what arguments could managers make to get approval for the solar panel project? 4. What would you do if you were in charge of approving capital investment proposals?'resent value annuity table Present value factor table Present Value of Annuity of $1 Present Value of $1 14% 16% 18% 20% Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 10% 20% 0.877 0.862 0.847 0.833 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.647 1.605 1.566 1.528 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 2.322 2.246 2.174 2.106 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 2.914 2.798 2.690 2.589 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 3.433 3.274 3.127 2.991 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 3.889 3.685 3.498 3.326 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.456 0.410 0.370 0.335 4.288 4.039 3.812 3.605 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.400 0.354 0.314 0.279 4.639 4.344 4.078 3.837 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.351 0.305 0.266 0.233 4.946 4.607 4.303 4031 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.308 0.263 0.225 0.194 5.216 4.833 4.494 4.192 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.270 0.227 0.191 0.162 5.453 5.029 4.656 4.327 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.237 0.195 0,162 0.135 5.660 5.197 4.793 4.439 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.208 0.168 0.137 0.112 5.842 5.342 4.910 4.533 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.182 0.145 0.116 0.093 6.002 5.468 5.008 4611 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.160 0.125 0.099 0.078 6.142 5.575 5.092 4.675 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.140 0.108 0.084 0.065 6.623 5.929 5.353 4.870 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.073 0.051 0,037 0.026 6.873 6.097 5.467 4.948 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.038 0.024 0.016 0.010 7.003 6.177 5.517 4.979 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.020 0.012 0.007 0.004 7.105 6.233 5.548 4.997 Period 40 0.142 0.097 0.046 0.022 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2. 160 2. 180 2.200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59. 196 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1, 181.882 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 Print DoneX Future value factor table i.........: Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3. 106 3.707 4.411 5.234 6. 192 Period 11 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 Period 20 1.220 1.486 1.806 2. 191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 Period 25 1.282 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 Period 30 1.348 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 Period 40 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Print Done