A small company is considering an investment of $2000 that can save 3000 kWh of electricity per year at $0.15/kWh while the annual maintenance fee is $50. The project has a lifetime of 8 years and the salvage value is 10% of the initial investment. -:) What is the simple payback period (SPP) (in years)? Blank 1 (Your choices: 4.0, 4.2, 4.6, 5.0, 5.2) -:) With an annual discount rate is 12%, what is the discounted payback period (in years)? 6.5 (Your choices: 5.9, 6.5, 7.6, 8.1, 8.9) -:) With an annual discount rate is 12%, what is the benefit-cost ratio (BCR)? (Hint: Benefit = Annual saving - Maintenance; Cost = Initial investment - Salvage) Blank 3 (Your choices: 0.92, 1.04, 1.12, 1.25, 1.43)

Elements Of Electromagnetics
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ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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A small company is considering an investment of $2000 that can save 3000 kWh of electricity per year at $0.15/kWh while the
annual maintenance fee is $50. The project has a lifetime of 8 years and the salvage value is 10% of the initial investment.
-:) What is the simple payback period (SPP) (in years)? Blank 1 (Your choices: 4.0, 4.2, 4.6, 5.0, 5.2)
-:) With an annual discount rate is 12%, what is the discounted payback period (in years)? 6.5 (Your choices: 5.9, 6.5, 7.6, 8.1, 8.9)
-:) With an annual discount rate is 12%, what is the benefit-cost ratio (BCR)? (Hint: Benefit = Annual saving – Maintenance; Cost =
Initial investment - Salvage) Blank 3 (Your choices: 0.92, 1.04, 1.12, 1.25, 1.43)
Blank 1
Blank 2
Blank 3
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Add your answer
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Transcribed Image Text:A small company is considering an investment of $2000 that can save 3000 kWh of electricity per year at $0.15/kWh while the annual maintenance fee is $50. The project has a lifetime of 8 years and the salvage value is 10% of the initial investment. -:) What is the simple payback period (SPP) (in years)? Blank 1 (Your choices: 4.0, 4.2, 4.6, 5.0, 5.2) -:) With an annual discount rate is 12%, what is the discounted payback period (in years)? 6.5 (Your choices: 5.9, 6.5, 7.6, 8.1, 8.9) -:) With an annual discount rate is 12%, what is the benefit-cost ratio (BCR)? (Hint: Benefit = Annual saving – Maintenance; Cost = Initial investment - Salvage) Blank 3 (Your choices: 0.92, 1.04, 1.12, 1.25, 1.43) Blank 1 Blank 2 Blank 3 Add your answer Add your answer Add your answer
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