Analyze a CSR capital investment proposal for Ganon Inc.

Ganon Inc. is evaluating a proposal to replace its HID (high intensity discharge) lighting with LED (light emitting diode) lighting throughout its warehouse. LED lighting consumes less power and lasts longer than HID lighting for similar performance. The following information was developed:

Line Item Description	Value
HID watt hour consumption per fixture	500 watts per hr.
LED watt hour consumption per fixture	300 watts per hr.
Number of fixtures	800
Lifetime investment cost (in present value terms) to replace each HID fixture with LED	$300
Operating hours per day	10
Operating days per year	300
Metered utility rate per kilowatt-hour (kwh)*	$0.12

*Note: A kilowatt-hour is equal to 1,000 watts per hour.

a. Determine the investment cost for replacing the 800 fixtures. fill in the blank 1 of 1$

b. Determine the annual utility cost savings from employing the new energy solution. fill in the blank 1 of 1$

c. Should the proposal be accepted

Evaluate the proposal using net present value, assuming a 15-year life and 8% minimum rate of return. (Click here to view Present Value of Ordinary Annuity.) fill in the blank