If you insulate your office for $28,000, you will save $2,800 a year in heating expenses. These
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Question:
If you insulate your office for $28,000, you will save $2,800 a year in heating expenses. These savings will last forever.
a. What is the NPV of the investment when the cost of capital is 4%? 10%?
b. What is the IRR of the investment? (Enter your answer as a whole percent.)
c. What is the payback period on this investment in years?
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