MW Connect 3 Connect nhducation.com/ext/map/index.html?con conexternal browserunchthttp:253A%252F%252Fims.meducation.com 252 mghmiddleware252Fm Maps Cengage Account Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate com A new furnace for your small factory will cost $30,000 and a year to install will require ongoing maintenance expenditures of $1800 a year. But it is far more fuel efficient than your old fumace and will reduce your consumption of heating oil by 2700 gallons per year. Heating oil this year will cost $3 a gallore the price per gallon is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foreseeable future. The furnace will last for 20 years at which point it will need to be replaced and will have no salvage value. The discount rate is 6% a. What is the net present value of the investment in the furnace? (Do not round Intermediate calculations. Round your answer to the nearest whole dollar) b. What is the IRR? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) c. What is the payback period? (Do not round Intermediate calculations. Round your answer to 2 decimal places d. What is the equivalent annual cost of the furnace? (Do not round Intermediate calculations, Round your answer to 2 decimal places.) e. What is the equivalent annual savings derived from the furnace? (Do not round Intermediate calculations. Round your answer to 2 decimal places) . Compare the PV of the difference between the equivalent annual cost and savings to your answer to part. Are the two measures the same or is one larger Answer is complete but not entirely correct. NPV IRR B 12.491 325 Ye d 3 45 . Equintal cost Equivalent amalan Are the measures the song 1 7000 51 O 8 Prev 4 of 8 !!! Next > O Co-Geagle Skype for Business MW Connect 3 Connect nhducation.com/ext/map/index.html?con conexternal browserunchthttp:253A%252F%252Fims.meducation.com 252 mghmiddleware252Fm Maps Cengage Account Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate com A new furnace for your small factory will cost $30,000 and a year to install will require ongoing maintenance expenditures of $1800 a year. But it is far more fuel efficient than your old fumace and will reduce your consumption of heating oil by 2700 gallons per year. Heating oil this year will cost $3 a gallore the price per gallon is expected to increase by $0.50 a year for the next 3 years and then to stabilize for the foreseeable future. The furnace will last for 20 years at which point it will need to be replaced and will have no salvage value. The discount rate is 6% a. What is the net present value of the investment in the furnace? (Do not round Intermediate calculations. Round your answer to the nearest whole dollar) b. What is the IRR? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) c. What is the payback period? (Do not round Intermediate calculations. Round your answer to 2 decimal places d. What is the equivalent annual cost of the furnace? (Do not round Intermediate calculations, Round your answer to 2 decimal places.) e. What is the equivalent annual savings derived from the furnace? (Do not round Intermediate calculations. Round your answer to 2 decimal places) . Compare the PV of the difference between the equivalent annual cost and savings to your answer to part. Are the two measures the same or is one larger Answer is complete but not entirely correct. NPV IRR B 12.491 325 Ye d 3 45 . Equintal cost Equivalent amalan Are the measures the song 1 7000 51 O 8 Prev 4 of 8 !!! Next > O Co-Geagle Skype for Business
