Question
1. As a business owner you have discovered that you can place motion sensors on all the lights in your business. The cost of putting
1. As a business owner you have discovered that you can place motion sensors on all the lights in your business. The cost of putting on these motion sensors will be $20,000. This will result in a savings of $4,500 dollars per year on your electrical bill. In five years your company will be moving from your current facilities to a new plant so your accountants inform you that any investments in the current factory must pay for themselves in that five-year time horizon. Your bank is willing to lend you the money for this investment at 5%. What is the net present value of this investment? should you make this investment? (Set this up as a chart as was done in the video)
The US government now offers a program to encourage energy savings. Under this new program businesses like yours can borrow for motion sensors at an interest rate of 3%. What is the net present value of this investment under the new government program and should you make this investment? (Continue using the chart set up as was done in the video)
plz help
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