Question.4400 - Ch. 16 Written AssignmentDetailsResolve the following problems (1, 2, 3, and 4 from the book chapter). Show the calculations.1 . Westland Manufacturing spends $20,000 to update the lighting in its factory to more energy-efficient LED fixtures. This will save the company $4,000 per year in electricity costs. What is the payback period of this project?2 . Westland Manufacturing spends $20,000 to update the lighting in its factory to more energy-efficient LED fixtures. This will save the company $4,000 per year in electricity costs. The company estimates that these fixtures will last for 10 years. If the company’s cost of funds is 8%, what is the NPV of this project?3 . If Westland Manufacturing finds that its cost of funds is 11%, what will happen to the NPV of the project in problem 2?4 . Westland Manufacturing spends $20,000 to update the lighting in its factory to more energy-efficient LED fixtures. This will save the company $4,000 per year in electricity costs. The company estimates that these fixtures will last for 10 years. What is the IRR of this project?
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Ch xxxxxxx AssignmentQuincy xxxxxxxxxx - xxxxxxxxxx of xxxxxxx April xx Written xxxxxxxxxxxxxxxxx Payback xxxxxx Initial xxxxxxxxxx Annual xxxx flow xxxxxxx period xxxxxxx period xxxxxxxxxxxx NPV xxxxxx payment x r x - xxx x x - x NPV xxxxxxx NPV xxxxxx payment x r x - xxx x x - x NPV xxxxxxx YearCash xxxx Using xxxxx s xxx function xxx IRR xx the xxxxxxx is xxxxxxxxxx to xxMore Articles From FIN 320 91 - Principles of Finance
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