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Considering a new project to retrofit a pump. The initial cost of the project is $100,000, and will save the company $25,000 per year in
Considering a new project to retrofit a pump. The initial cost of the project is $100,000, and will save the company $25,000 per year in utility costs (income to the company). The salvage value of the pump after the 5 year life is $20,000. Use NPV at 8% interest rate to determine if this is a good investment. What is the payback?
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To calculate the Net Present Value NPV of the project we can use the formula NPV CF0 CF11i1 CF21i2 C...
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Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
2nd Canadian Edition
1118168879, 9781118168875
