What is the irr on the incremental investment

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Reference no: EM131927907

Insulated concrete forms (ICF) can be used as a substitute for traditional wood framing in building construction.

Heating and cooling bills will be about 52% less than in a similar wood-frame home in Vermont.

An ICF home will be approximately 11% more expensive to construct than a wood-frame home.

A typical 2,200 square foot home costs $140 per square foot to build with wood framing in Vermont and costs $294 per month (on average) to heat or cool.

What is the IRR on the incremental investment in an equivalent-sized ICF home?

The home's residual value with both framing methods in 20 years is expected to be $280,000.

Assume annual compounding The IRR is (Round to the nearest whole number)

Reference no: EM131927907

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