Westland Manufacturing spends $$20,000$ to update the lighting in its factory to more energy$-$efficient LED fixtures. This will save the company $$4,000$ per year in electricity costs. What is the payback period of this project?

Westland Manufacturing spends $$20,000$ to update the lighting in its factory to more energy$-$efficient LED fixtures. This will save the company $$4,000$ per year in electricity costs. The company estimates that these fixtures will last for $10$ years. If the companys cost of funds is $8\%,$ what is the NPV of this project?

If Westland Manufacturing finds that its cost of funds is $11\%,$ what will happen to the NPV of the project in problem $2?$

Westland Manufacturing spends $$20,000$ to update the lighting in its factory to more energy$-$efficient LED fixtures. This will save the company $$4,000$ per year in electricity costs. The company estimates that these fixtures will last for $10$ years. What is the IRR of this project?

Westland Manufacturing spends $$20,000$ to update the lighting in its factory to more energy$-$efficient LED fixtures. This will save the company $$4,000$ per year in electricity costs. The company estimates that these fixtures will last for $10$ years. If the companys cost of funds is $8\%,$ what is the PI of this project?

Westland Manufacturing spends $$20,000$ to update the lighting in its factory to more energy$-$efficient LED fixtures. This will save the company $$4,000$ per year in electricity costs. The company estimates that these fixtures will last for $10$ years. If the companys cost of funds is $8\%,$ what is the modified IRR of this project?

Westland Manufacturing spends $$20,000$ to update the lighting in its factory to more energy$-$efficient LED fixtures. This will save the company $$4,000$ per year in electricity costs. The company estimates that these fixtures will last for $10$ years. If the companys cost of funds is $8\%,$ what is the discounted payback period of this project?

Holiday Hotels is considering two different floorings to use in its buildings. The less expensive tile will need to be replaced every five years. The more durable, more expensive tile will need to be replaced every eight years. To use the replacement chain approach to compare these two projects, how many times would you have to assume each type of tile would be replaced?