Question: If you insulate your office for $24,000, you will save $2,400 a year in heating expenses……
Question: If you insulate your office for $24,000, you will save $2,400 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 8%? 10%? I know the answer is 6000 for 8% and 0 for 10%, however I’m not sure how to do the calculation on excel or by hand. Any suggestions? Thanks. If you insulate your office for $24,000, you will save $2,400 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 8%? 10%? I know the answer is 6000 for 8% and 0 for 10%, however I’m not sure how to do the calculation on excel or by hand. Any suggestions? Thanks.