If Westland Manufacturing finds that its cost of funds is 11%, what will happen to the NPV
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If Westland Manufacturing finds that its cost of funds is 11%, what will happen to the NPV of the project in problem 2?
Data from 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. If the company’s cost of funds is 8%, what is the NPV of this project?
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