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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
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: *Note: A kilowatt-hour is equal to 1,000 watts per hour. a. Determine the investment cost for replacing the 800 fixtures. q b. Determine the annual utility cost savings from employing the new energy solution. q 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.) $
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