(Net Present Value Table Required)Simon Manufacturing Is Conducting Preliminary Research

(Net present value table required) 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 net present value (NPV) of the project,assuming a discount rate of 8%?

A) $54,565
B) $(233,975)
C) $299,565
D) $11,025

Correct Answer:

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