(Answered) Q1 the local it company is considering an energy management

Finance

Q1. The local IT company is considering an energy management investment which will save 3000kWh of electricity per year at $0.3/kWh. Maintenance will cost $60.00 per year and company discount rate is 6%. 1. How much can the company spend on the purchase price for this project and still have a Simple Payback Period of two years. 2. Using this figure as the investment cost what is the net present value of the project. Assume the life of the project is 5 years.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92543192
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Shocking co is expected to maintain a constant 7 percent

Shocking Co. is expected to maintain a constant 7 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.2 percent, what is the required return on the power company's stock?

A project costs 67600 and is expected to generate 16000 per

A project costs $67,600 and is expected to generate $16,000 per year for 6 years. The firm's required rate of return is 8%. What is the traditional payback period and discounted payback period?

1 what is the average collection period for the year for

1. What is the average collection period for the year for Company XYZ Sales - $1,500 (25% cash, 75% credit); Inventory - $750; Depreciation - $1,000; Plant & Equipment $2,000; Accounts Receivable - $250; Notes Payable - ...

Market-value ratios garret industries has a priceearnings

(?Market-value ratios?) Garret Industries has a? price/earnings ratio of 19.46X a. If? Garret's earnings per share is ?$1.65?, what is the price per share of? Garret's stock? b. Using the price per share you found in par ...

1 the equal annual end-of-year payments required to repay a

1. The equal annual end-of-year payments required to repay a loan of $60,000 borrowed at 12% for ten years is: a. $5,332 b. $6,854 c. $10,619 d. 12,472 2. A cash deposi ...

Can anyone explain this topic consolidation can hide

Can anyone explain this topic 'Consolidation can hide imminent business collapse'. If you can share your argument with real examples that will be much appreciated.

Question - wald incs stock has a required rate of return of

Question - Wald Inc's stock has a required rate of return of 10 and it sells for 40 per share Wald's dividend is expected to grow at a constant rate of 7 per year. What is the expected year-end dividend D1?

Calculate the after-tax wacc based on the following

Calculate the after-tax WACC based on the following information: nominal interest rate on debt = 10%; cost of common equity = 20%; common equity = $600,000; interest-bearing debt = $400,000; and a tax rate = 30%.

What is firm level strategy in business define and

What is firm level strategy in business? Define and explain

What is a budget variance analysis and why is this type of

What is a budget variance analysis and Why is this type of analysis key to determining the strengths and weaknesses of a business?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert