Question
10. If you insulate your office for $10,000, you will save $1,000 a year in heating expenses forever. a) What is the payback period for
10. If you insulate your office for $10,000, you will save $1,000 a year in heating expenses forever.
a) What is the payback period for this investment? Would you accept it if the cutoff period is 8 years?
b) What is the NPV of this investment when the cost of capital is 8%? Would you approve the insulation of your office?
c) What is the NPV of this investment when the cost of capital is 10%? Would you approve the insulation of your office?
d) What is the investments IRR?
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Public School Finance Decoded
Authors: Jay C. Toland
1st Edition
1475827679, 978-1475827675
