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A computer call center is going to replace all of its incandescent lamps with more energy efficient fluorescent lighting fixtures. The total energy savings are

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A computer call center is going to replace all of its incandescent lamps with more energy efficient fluorescent lighting fixtures. The total energy savings are estimated to be $2,943 per year, and the cost of purchasing and installing the fluorescent fixtures is $5,300. The study period is three years, and terminal market values for the fixtures are negligible. a. What is the IRR of this investment? b. What is the simple payback period of the investment? c. Is there a conflict in the answers to Parts (a) and (b)? List your assumptions. d. The simple payback "rate of return" is 1/0. a. The IRR of the investment is %. (Round to one decimal place.) b. The simple payback period of the investment is 2 years. (Round up to the next whole number.) c. Select all the correct assumptions below. A. The IRR will signal an acceptable (profitable) project if the MARR is higher than 30.6%. B. The value of 0 may indicate the best project in terms of liquidity. C. The IRR will signal an acceptable (profitable) project if the MARR is less than 30.6%. D. The value of 0 may indicate a poor project in terms of liquidity. d. The simple payback "rate of return", 1/0, is %. (Round to one decimal place.)

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