If your vacation cabin had rainwater harvesting, you could use it more often. Your water utility charges you $25 per month for basic service and $10 in usage fees. You plan to own the cabin for 10 more years. The gutters, filtration system, and storage tank would cost $4,500 upfront. Because of your roof size, the catchment system would supply all the water you need, and you could disconnect from the water utility. 1. What is the IRR (write as a percentage)? 2. Is it a good idea (Yes or No, based on IRR)?

If your vacation cabin had rainwater harvesting, you could use it more often. Your water utility charges you $25 per month for basic service and $10 in usage fees. You plan to own the cabin for 10 more years. The gutters, filtration system, and storage tank would cost $4,500 upfront. Because of your roof size, the catchment system would supply all the water you need, and you could disconnect from the water utility. 1. What is the IRR (write as a percentage)? 2. Is it a good idea (Yes or No, based on IRR)?

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

Section: Chapter Questions

Problem 1PS

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