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A new furnace for your small factory is being installed right now, will cost $41,000, and will be completed in one year. At that point,

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A new furnace for your small factory is being installed right now, will cost $41,000, and will be completed in one year. At that point, it will recuire ongoing maintenance expenditures of $3.500 a year. But it is far more fuel-efficlent than your old furnace and will reduce your consumption of heating oll by 3,800 gallons peryear. Heating oil this year costs $3 a gallon, the price per galion is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foresecable future. The furnace will last for 20 years from initial use, at which point it will need to be replaced and will have no salvage value. (Specifically, the firm pays for the furnace at time 0 . and then reaps higher net cash flows from that investment at the end of years 120 ). The discount rate is 10%. a. What is the net present value of the investment in the furnace? (Do not round intermediate calculations. Round your answer to the nearest whole dollar.) b. What is the IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What is the payback period? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What is the equivalent annual cost of the fumace? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. What is the equivalent annual savings derived from the furnace? (Do not round intermediate calculations. Round your answer to 2 ) decimal places.) f. Compare the PV of the difference between the equivalent annual cost and savings to your answer to part (a). Are the two measures the same or is one larger

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