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Npv and other investment criteria

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NPV and other investment criteria

Low energy/super-efficient electricity conductors typically cost £5 (cost of buying the electricity conductor), have a life of 9 years and use about £2.50 of electricity a year.

Conventional electricity conductors are cheaper to buy for they cost only 0.30 (cost of buying electricity conductors). On the other hand, they last only about a year and use about £8 of energy per year.

The real discount rate is 5%. Based on your calculations above, what is your benefit in monetary terms (if any) by showing preference to low energy/super-efficient electricity conductors?

Reference no: EM132516372

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