You are preparing to purchase a Solar Heating System for your home. The sales person said that the system will cost $10000 upon installation and your benefit from the system will be a reduction in your heating bills of $2000 per year for 5 years.
Now as a student of finance you wish to do a NPV analysis on this proposed investment for your home…
Assumptions to use:
Initial investment $10000
Savings of $2000 per year for 5 years
Your interest earned on your savings is at 5%
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