Question
A steel company wishes to replace the lighting in its warehouse with an energy efficient LED system. Installing the new lighting system will cost$1.5 million,
A steel company wishes to replace the lighting in its warehouse with an energy efficient LED system. Installing the new lighting system will cost$1.5 million, but is expected to generate a cost savings of $ 140 comma 000
$140,000 per year for the next 25years, when the new lights will need to be replaced. If the steel company has a cost of capital of6%, what is the NPV of thisinvestment?
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
