New fuel efficient furnance/air conditioner unit

Assignment Help Financial Management

Reference no: EM131987532

Billy Bob wants to consider purchasing a new fuel effieicnet furnance/air conditioner unit. The unit has been bid to cost $3198 to purchase and install. He estimates his annual savings to be $480 per year for the next 15 years. (Cost is at t=0, the savings can be considered annually beginning at t=1 and going until t=15), Billy considers opportunity cost of funds to be 6%. If he use the NPV method, what is the NPV he calculates for his project? (Assume annual compounding/discounting, and answer in $s to the nearest whole dollar without the $ sign needed, e.g,xxxx, or 1234)

Reference no: EM131987532

Questions Cloud

Prepare the journal entry to record the purchase of truck : On January 1, 2008, ABC company purchased a truck. Prepare the journal entry to record the purchase of the truck (round to nearest dollar)

Monitoring risk management action plan : Describe the steps you would take when monitoring your risk management action plan.

Implement to interest people : Outline a strategy that you could implement to interest people / employees the companies risk management process.

What is the expected return of the market portfolio : What is the expected return of the minimum-variance zero-beta portfolio? What is the expected return of the market portfolio

New fuel efficient furnance/air conditioner unit : Billy Bob wants to consider purchasing a new fuel effieicnet furnance/air conditioner unit.

Discuss the different types of compensation : 1. Discuss the different types of compensation.

Generate identical cash flows : Consider two? firms, With and? Without, that have identical assets that generate identical cash flows.

Explain why you would or would or would not recommend : Explain why you would or would or would not recommend that JD Hall and Associates invests the employees 401k in one of these companies.

Different aspects of strategy formulation : What are tools used in the different aspects of strategy formulation, tools used in implementation and tools used in strategy evaluation?

User Account

All Pages