Question
If you insulate your office for $10,000, you will save $1,000 a year in heating expenses. These savings will last forever. a. and b. What
If you insulate your office for $10,000, you will save $1,000 a year in heating expenses. These savings will last forever.
a. and b. What is the NPV of the investment when the cost of capital is 8%? What if it is 10%?
c. What is the IRR of the investment?
Note: Enter your answer as a whole percent.
d. What is the payback period on this investment?
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Public Finance In Canada
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
5th Canadian Edition
1259030776, 978-1259030772
