Business, 30.03.2020 19:04 lberries08

Your firm wants to replace the furnace in the building with a more energy-efficient unit that has a two-year lifetime. Suppose the new furnace will cost $10,000 right now. In each year of operation, the new furnace will save the firm $5500 in energy expense. If the interest rate is 10%, the firm buy the new furnace because the net present value is .

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