You have heard about a new "green" light bulb that is costly to purchase but uses less electricity and thus allows you to save money on your utility bill. Suppose the new light bulb costs $10 today, but next year your electricity bill will be $50 lower. If the interest rate is 10%, what is the net present value of buying this new light bulb and using it for one year? OA. $40 OB. -$45.45 OC. $55 OD. $35.45
You have heard about a new "green" light bulb that is costly to purchase but uses less electricity and thus allows you to save money on your utility bill. Suppose the new light bulb costs $10 today, but next year your electricity bill will be $50 lower. If the interest rate is 10%, what is the net present value of buying this new light bulb and using it for one year? OA. $40 OB. -$45.45 OC. $55 OD. $35.45
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.7P
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