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You are considering installing solar panels on your roof, which you expect will reduce your...

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Finance

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You are considering installing solar panels on your roof, which you expect will reduce your utility bill by $2600 in the first year (assume end of year), with the savings growing at a 2.7% annual rate thereafter for the foreseeable future (assume perpetual). If the installation costs $18,000 after all federal and state tax credits and your cost of capital (the discount rate) is 8.1%, what is the NPV of this investment? Round to the nearest cent. Type your numeric answer and submit 3277.11 You are incorrect Hint X You need to use the PV of a growing perpetuity formula

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