Considering an energy management investment

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Q1. The local IT company is considering an energy management investment which will save 3000kWh of electricity per year at $0.3/kWh. Maintenance will cost $60.00 per year and company discount rate is 6%. 1. How much can the company spend on the purchase price for this project and still have a Simple Payback Period of two years. 2. Using this figure as the investment cost what is the net present value of the project. Assume the life of the project is 5 years.

Reference no: EM131734506

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