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What is the NPV of this investment

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Question - A steel company wishes to replace the lighting in its warehouse with an energy efficient LED system. Installing the new lighting system will cost $1.5 million, but is expected to generate a cost savings of $140,000 per year for the next 25 years, when the new lights will need to be replaced. If the steel company has a cost of capital of 6%, what is the NPV of this investment?

Reference no: EM132836764

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