Question
5 Item 8 Item 8 1.44 points If you insulate your office for $20,000, you will save $2,000 a year in heating expenses. These savings
5
Item 8
Item 8 1.44 points
If you insulate your office for $20,000, you will save $2,000 a year in heating expenses. These savings will last forever.
a. What is the NPV of the investment when the cost of capital is 8%? 10%?
b. What is the IRR of the investment? (Enter your answer as a whole percent.)
c. What is the payback period on this investment?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
