Find what is the irr of the investment

Reference no: EM1343924

If you insulate your office for $22,000, you will save $2,200 a year in heating expenses. These savings will last forever.

a. What is the NPV of the investment when the cost of capital is 5%? 10%?

Cost of Capital NPV
5% $
10%

b. What is the IRR of the investment?

IRR %

c. What is the payback period on this investment?

Reference no: EM1343924

Questions Cloud

Evaluate the value of brands : What approaches would you use to evaluate the value of brands and what assumptions underlie these approaches?

Add value to shareholders of corporations : Rumors about potential mergers are often a hot topic in the business press. One rumor being floated around recently is a potential merger between mobile phone giants T-Mobile and Sprint.

Calculate expected return using capm : Estimate of beta for British Petroleum. Please consider examining or using an industry average beta, especially if the reported beta you find seems unrealistic or inappropriate.

Busines analysis of possible sprint-t-mobile merger : This assignment address the possible benefit of to shareholders of T-Mobile and Sprint in a possible merger of the two companies.

Find what is the irr of the investment : Evaluate what is the NPV of the investment when the cost of capital is 5% and what is the IRR of the investment?

Determine the npv : A project has the following cash flows: What is the NPV at a discount rate of zero percent?

Finding content of top of stack-call instruction is executed : Specify the content of PC, SP, and the top of the stack in the following situations: After the call instruction is executed.

Information about corporate restructuring : Consider what happens to the stakeholders, company image, price per share, market share, company assets, industry position, goodwill, and service capability. Once the failure of an M&A occurs, what happens to assets of both companies?

Fed to influence interest rates : Compare longterm investments and short-term risks, in terms of the various types of risk to which investors are exposed. Describe your answers.

User Account

All Pages