(Answered) A company has decided to install a new refrigeration system

Management Studies

A company has decided to install a new refrigeration system that uses a low GWP (global warming potential) refrigerant. The new system costs $10,120. Although the efficiency of the new system is the same as the current system (i.e. there are no energy savings), the installation of the new system makes them eligible for an sustainability grant of $13,100. However the grant is only given after the system has been operating for 3 years.

What is the Internal Rate of Return (IRR) on this project (in %)?

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Business Management, Management Studies

Category:- Business Management
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