The owners of a commercial retail space that has a long-term lease with a successful tenant is considering of inves...
The owners of a commercial retail space that has a long-term lease with a successful tenant is considering of investing $13,000 into the building's heating and air conditioning system to improve its efficiency. It is estimated that it will save them $5,000 each of the first two years, $3,000 the third year, $2,000 the fourth year, and $1,500 in the fifth. The rate of return is 6 percent. Determine the net present value of the investment, not considering depreciation and taxes. O $3,490. $-1,390. O $1.390. O S-3.490.
The owners of a commercial retail space that has a long-term lease with a successful tenant is considering of investing $13,000 into the building's heating and air conditioning system to improve its efficiency. It is estimated that it will save them $5,000 each of the first two years, $3,000 the third year, $2,000 the fourth year, and $1,500 in the fifth. The rate of return is 6 percent. Determine the net present value of the investment, not considering depreciation and taxes. O $3,490. $-1,390. O $1.390. O S-3.490.