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)
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
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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![**Interactive Exercise on Investment Analysis**
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.
1. **Simple Payback Period (SPP):** Calculate the SPP in years.
**Blank 1** (Choices: 4.0, 4.2, 4.6, 5.0, 5.2)
2. **Discounted Payback Period:** With an annual discount rate of 12%, calculate the discounted payback period in years.
**Blank 2** (Choices: 5.9, 6.5, 7.6, 8.1, 8.9)
3. **Benefit-Cost Ratio (BCR):** With an annual discount rate of 12%, calculate the BCR. (Hint: Benefit = Annual saving – Maintenance; Cost = Initial investment - Salvage)
**Blank 3** (Choices: 0.92, 1.04, 1.12, 1.25, 1.43)
**Input Your Answers Below:**
- **Blank 1**: [Add your answer]
- **Blank 2**: [Add your answer]
- **Blank 3**: [Add your answer]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27134505-b65c-4de2-b6d1-83a314db2633%2Ffb4a1f75-a6a7-42f8-8a24-09b4ceb6e063%2Fzxgi24f_processed.png&w=3840&q=75)
Transcribed Image Text:**Interactive Exercise on Investment Analysis**
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.
1. **Simple Payback Period (SPP):** Calculate the SPP in years.
**Blank 1** (Choices: 4.0, 4.2, 4.6, 5.0, 5.2)
2. **Discounted Payback Period:** With an annual discount rate of 12%, calculate the discounted payback period in years.
**Blank 2** (Choices: 5.9, 6.5, 7.6, 8.1, 8.9)
3. **Benefit-Cost Ratio (BCR):** With an annual discount rate of 12%, calculate the BCR. (Hint: Benefit = Annual saving – Maintenance; Cost = Initial investment - Salvage)
**Blank 3** (Choices: 0.92, 1.04, 1.12, 1.25, 1.43)
**Input Your Answers Below:**
- **Blank 1**: [Add your answer]
- **Blank 2**: [Add your answer]
- **Blank 3**: [Add your answer]
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