Young naustres is evaluating whether to invest in solar panels to provide some ot the electrical needs of its main office building in Ann Arbor, Michigan. The solar panel project would cost $675,000 and would provide cost savings in its utility bills of $40,000 per year. it is anticipated that the solar panels would have a life ot 15 years and would have no residual value.

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Youag linduathos is ovaluating whether to inwost in solar panels to provide some of the efectrical nieds of ins main oflice building in Ann Arboc, Michlgan. The solar panol project would cost 5675,000 and would provide cost saviogs in its utility bilis of 510.000 per year. It is arwicipated that the solar panels would hove a lile of 15 years and would have ne realdual value. Read the focuitoments (Click the Icon to view the present value factor tatile.) (Click the icon to view the present value anciuly factor table.) (Click the icon to virw the futire value factor tabilo) (Click the icen to siew the fir ife value annuly factor tablit ) Requirement 1. Calculate the payback perlod in years of the solar panel preject. Dotermine the formula, than calculate the payback period (Round your answer to two decinal places.) Requirements 1. Calculate the payback period in years of the solar panel project. 2. If the company uses a discount rate of 10%, 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 the energy manager make to try to obtain approval for the solar panel project? 4. What would you do if you were in charge of approving capital investment proposals