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Business, 29.10.2019 21:31 kashbaby

Just because a project's payback period is relatively long doesn't mean it is not profitable in the long run. consider an investment in led lights with a price tag of $225 comma 000. the estimated annual savings in electricity and routine maintenance is $40 comma 700 and the life of the led lights is 15 years. assume that the payback period of three years or less is desired by the investor. a. what is the simple payback period for the lights? b. what is the irr of this investment? c. what do you conclude from part (a) and part (b)?

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