Question
Sue was presented with a capital expenditure for a new air conditioning unit which costs $12,000 today and would generate the following savings: Year Amount
Sue was presented with a capital expenditure for a new air conditioning unit which costs $12,000 today and would generate the following savings:
| Year | Amount |
| 1 | $2,000 |
| 2 | $3,000 |
| 3 | $2,000 |
| 4 | $4,000 |
| 5 | $5,000 |
| 6 | $7,500 |
| 7 | $5,000 |
| 8 | $2,500 |
If the appropriate discount rate is 8 percent, what is the NPV and the IRR for this outlay?
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Understanding The Finance Of Welfare
Authors: Howard Glennerster
2nd Edition
1847421091, 978-1847421098
