The high-tech home of today features computer apps that control air conditioning, heating, and large and small appliances from your smartphone or tablet. For a typle estimated benefits of a certain high-tech home is $1,500 per year. a. If a payback period of seven years (or better) is desirable, how much can be justified for the installation of these apps? b. When N = 7 years, what is the internal rate of return?
The high-tech home of today features computer apps that control air conditioning, heating, and large and small appliances from your smartphone or tablet. For a typle estimated benefits of a certain high-tech home is $1,500 per year. a. If a payback period of seven years (or better) is desirable, how much can be justified for the installation of these apps? b. When N = 7 years, what is the internal rate of return?
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
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Transcribed Image Text:The high-tech home of today features computer apps that control air conditioning, heating, and large and small appliances from your smartphone or tablet. For a typical 2,000 square foot home, the
estimated benefits of a certain high-tech home is $1,500 per year.
a. If a payback period of seven years (or better) is desirable, how much can be justified for the installation of these apps?
b. When N = 7 years, what is the internal rate of return?
a. The affordable amount that can be spent on "smart home" apps is $. (Round to the nearest dollar.)
b. The internal rate of return is%. (Round to one decimal place.)
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