If you insulate your office for $13,000, you will save $1,300 a year in heating expenses. These savings will last forever.

a. What is the NPV of the investment when the cost of capital is 8%? 10%? (Leave no cells blank - be certain to enter "0" wherever required.)

Cost of Capital NPV

8% $

10% $

b. What is the IRR of the investment?

IRR % _____

c. What is the payback period on this investment?

Payback period _____ years