Continuing on from the previous question assume the rate of interest is 12%. 18) What's the present value of the energy saving from the energy efficient model?
Continuing on from the previous question assume the rate of interest is 12%. 18) What's the present value of the energy saving from the energy efficient model?
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
Problem 1PS
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The previous question stated that the energy efficient refrigerator will save $40 a year. what is the difference in the initial purchase price between the energy efficient model and the regular model? the difference is $205.
Transcribed Image Text:Continuing on from the previous question assume
the rate of interest is 12%.
18) What's the present value of the energy saving
from the energy efficient model?
![17A) You go to Big George's to buy a new refrigerator
for your apartment. The store offers two models,
regular (costs $1518) and energy efficient
(costs $1723). Both will last for 10 years.
[Go on to 17B.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a44212c-b8b1-4ff0-bde6-3e570916b708%2F307f9231-10c7-43e0-8e52-18262a90d55f%2F9b2kd6t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:17A) You go to Big George's to buy a new refrigerator
for your apartment. The store offers two models,
regular (costs $1518) and energy efficient
(costs $1723). Both will last for 10 years.
[Go on to 17B.]
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