A process furnace upgrade costs $100,000 and will save $20,000 per year in fuel over its 10-year lif

A process furnace upgrade costs $100,000 and will save $20,000 per year in fuel over its 10-year lifetime. Fuel prices are projected to escalate 8% per year over this period.

  1. Draw the cash flow diagram.
  1. Find the simple payback SP.
  1. Find the rate of return ROR.
  1. Assuming a discount rate of 5%, find the net present value NPV of savings.
  1. Find the return on investment ROI (also called the internal rate of return IRR in Excel).

"Is this question part of your assignment? We can help"

ORDER NOW