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A manufacturing company is considering installing a heat recovery system to help offset their energy cost for heating.

- The investment cost is $150,000

- The estimated energy cost savings is 38% with the heat recovery system

- The current energy cost for heating is $5,000 per mont

- The current government subsity for this kind fo energy conservation investment is 25% (meaning the company's effective investment cost is reduced by 25%)

- The company's interest rate is 3%

Determine the sensitivity of the breakeven point in changes to the following:

-Changes in the government subsity down to 0% and up to 50%

-Changes in the company's interest rate down to 2% and up to 6%

-Changes in energy saving +/- 25%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92313656

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