2. Problem 8-26 Investment Criteria (LO1, LO2, L04) If you insulate your office for $16.000, you will save $1,600 a year in heating expenses. These savings will last forever. 10 points a. What is the NPV of the investment when the cost of capital is 5%? 10%? Skipped NPV Cost of Capital 5% eBook 10% Hint Print b. What is the IRR of the investment? (Enter your answer as a whole percent.) RR % References c. What is the payback period on this investment? Payback period years 2. Problem 8-26 Investment Criteria (LO1, LO2, L04) If you insulate your office for $16.000, you will save $1,600 a year in heating expenses. These savings will last forever. 10 points a. What is the NPV of the investment when the cost of capital is 5%? 10%? Skipped NPV Cost of Capital 5% eBook 10% Hint Print b. What is the IRR of the investment? (Enter your answer as a whole percent.) RR % References c. What is the payback period on this investment? Payback period years