Pinto plc is considering spending 10,000 on insulating its office, which will save it 1,000 per year
Question:
Pinto plc is considering spending €10,000 on insulating its office, which will save it €1,000 per year in heating expenses in perpetuity.
(a) What is the NPV of the investment when the cost of capital is 8 per cent?
(b) What is the IRR of the investment?
(c) What is the payback period of the investment?
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Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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