A public school is being renovated for $13.5 million. The building has geothermal heating andcooling, high-efficiency windows, and a solar array that permits the school to sell electricity back tothe local electric utility. The annual value of these benefits is estimated to be $2.7 million. Inaddition, the residual value of the school at the end of its 40-year life is negligible.What is the simple payback period for the renovatedschool?[ Select ]What is the internal rate of return for the renovated[ Select ]school?

Given, Cost of renovation = $13.5 million Annual benefits = $2.7 million Life = 40 years

Answered: A public school is being renovated for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Techno Corporation is currently manufacturing an item at vanable costs of $4 per unit. Annual fixed costs of manufacturing this item are $141,000. The current selling price of the item is $10 per unit, and the annual sales volume is 35,000 units a. Techno can substantially improve the item's quality by installing new equipment at additional annual fixed costs of $55,000 Vanable costs per unit would increase by $1, but, as more of the better-quality product could be sold, the annual volume would increase to 60,000 units. Should Techno buy the new equipment and maintain the current price of the item? Why or why not? because the profit from $to $(Enter your responses an integers)
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