Recover the initial investment

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Reference no: EM131807453

A homeowner is considering an upgrade from a fuel oil-based furnace to a natural gas unit. The investment in the fixed equipment, such as a new boiler, will be $2500 installed. The cost of the natural gas will average $60 per month over the year, instead of the $145 per month that the fuel oil costs. If the interest rate is 9% per year, how long will it take to recover the initial investment?

Reference no: EM131807453

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