Simon Manufacturing Is Conducting Preliminary Research into Installing a Geothermal

Simon Manufacturing is conducting preliminary research into installing a geothermal heat pump to heat and cool its factories and offices.The initial cost of installing the new system is $245,000;however,Simon will save $35,000 annually on its heating and cooling costs.The system has an expected life of 15 years.
What is the payback period,in years,for the geothermal heat pump?

A) 7.00 years
B) 4.49 years
C) 25 years
D) 8.56 years

Correct Answer:

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