Question

If you insulate your office for $27,000, you will save $2,700 a year in heating expenses....

If you insulate your office for $27,000, you will save $2,700 a year in heating expenses. These savings will last forever.

a. What is the NPV of the investment when the cost of capital is 6%? 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?

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