You are preparing to purchase a Solar Heating System for your home.

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%