Heat loss through exterior walls of her warehouse will cost

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Reference no: EM131060428

A small business owner estimates that the heat loss through the exterior walls of her warehouse will cost approximately $4,000 per year. A local company is offering insulation that can reduce the heat loss by 80%, with an installation cost of $17,000 now. She intends to keep the warehouse for 10 years. If the cost of the heat loss increases by $300 per year, after next year, what is the IRR?

a. 12.32%

b.13.44%

c.19.23%

d.15.52%

e.16.15%

Reference no: EM131060428

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