A 2,000 square foot house in New Jersey j costs $1,725 each winter to heat with its

Question:

A 2,000 square foot house in New Jersey j costs $1,725 each winter to heat with its existing oil-burning furnace. For an investment of $5,000, a natural gas furnace can be installed, and the winter heating bill is estimated to be $1,000. If the homeowner's is 6% per year, what is the discounted of this proposed investment?
(a) 7 years
(b) 8 years
(c) 9 years
(d) 10 years
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other... Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...