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Hello, I am having issues with this question. Please do show work, Thank you very much! Analyze a CSR Capital Investment Proposal for Den-Tex Company

image text in transcribedHello, I am having issues with this question. Please do show work, Thank you very much!

Analyze a CSR Capital Investment Proposal for Den-Tex Company Den-Tex Company 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: 500 watts per hr. 300 watts per hr. 700 HID watt hour consumption per fixture LED watt hour consumption per fixture Number of fixtures Lifetime investment cost (in present value terms) to replace each HID fixture with LED Operating hours per day Operating days per year $500 10 300 Metered utility rate per kilowatt-hour (kWh)* $0.11 *Note: A kilowatt-hour is equal to 1,000 watts per hour. a. Determine the investment cost for replacing the 700 fixtures. $ b. Determine the annual utility cost savings from employing the new energy solution. $ c. Should the proposal be accepted? Yes 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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