Comparing Investment Criteria Pinto plc is considering spending 10,000 on insulating its office, which will save it

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Comparing Investment Criteria Pinto plc is considering spending €10,000 on insulating its office, which will save it €1,000 per year in heating expenses in perpetuity.

(a) What is the NPV of the investment when the cost of capital is 8 per cent?

(b) What is the IRR of the investment?

(c) What is the payback period of the investment?

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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