A public school is being renovated for $13.5 million. The building has geothermal heating and cooling, high-efficiency windows, and a solar array that permits the school to sell electricity back to the local electric utility. The annual value of these benefits is estimated to be $2.7 million. In addition, the residual value of the school at the end of its 40-year life is negligible. What is the simple payback period and internal rate of return for the renovated school?
A public school is being renovated for $13.5 million. The building has geothermal heating and cooling, high-efficiency windows, and a solar array that permits the school to sell electricity back to the local electric utility. The annual value of these benefits is estimated to be $2.7 million. In addition, the residual value of the school at the end of its 40-year life is negligible. What is the simple payback period and internal rate of return for the renovated school?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A public school is being renovated for $13.5 million. The building has geothermal heating and cooling, high-efficiency windows, and a solar array that permits the school to sell electricity back to the local electric utility. The annual value of these benefits is estimated to be $2.7 million. In addition, the residual value of the school at the end of its 40-year life is negligible. What is the simple payback period and
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