Question
A company is considering a lighting retrofit that will cost $86,000 to implement and have a projected annual savings of $27,000. The company uses a
A company is considering a lighting retrofit that will cost $86,000 to implement and have a projected annual savings of $27,000. The company uses a discount rate of 12% and will need to invest $90,000 in a new boiler in three years' time. The lighting projects can only proceed if the savings produced by the project over the three years timeline is greater than the invest required for the boiler. Should the company invest in the lighting project?
A. The company should reevaluate the projects
B. Yes
C. No
D. Not enough information to decide
PLEASE EXPLAIN ALL OPTIONS
PLEASE DON'T USE CHATGPT OTHERWISE I WILL GIVE DOWNVOTE
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