Illustrate rate of growth in fuel costs justifies going

Reference no: EM1335243

It costs $2600 to insulate a factory. Nest year, the fuel savings will be $220. EAch year after this, the cost of fuel is expected to rise by the rate g. If the discount rate is 12%, what rate of growth in fuel costs justifies going ahead with the insulation plan? Make sure that the rate of growth and the discount rate are aligned in terms of periodss.

Reference no: EM1335243

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