Evaluate the NPV for a green building with the following cost and savings data. Use a discount rate equal to the current market rate of return (mid-March 2020) - 7% annually. Show gross and net PV calculations (ROI not necessary): a. Incremental costs for achieving LEED credits: $50,000 b. Year 1 savings: $12,550 c. Year 2 savings: $12,100 d. Year 3 savings: $11,900 e. Year 4 savings: $11,750 f. Year 5 savings: $11,550

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Evaluate the NPV for a green building with the following cost and savings data.
Use a discount rate equal to the current market rate of return (mid-March 2020) - 7%
annually. Show gross and net PV calculations (ROI not necessary):
a. Incremental costs for achieving LEED credits: $50,000
b. Year 1 savings: $12,550
c.
Year 2 savings: $12,100
d. Year 3 savings: $11,900
e. Year 4 savings: $11,750
f. Year 5 savings: $11,550
Transcribed Image Text:Evaluate the NPV for a green building with the following cost and savings data. Use a discount rate equal to the current market rate of return (mid-March 2020) - 7% annually. Show gross and net PV calculations (ROI not necessary): a. Incremental costs for achieving LEED credits: $50,000 b. Year 1 savings: $12,550 c. Year 2 savings: $12,100 d. Year 3 savings: $11,900 e. Year 4 savings: $11,750 f. Year 5 savings: $11,550
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