(Net Present Value Table Required)Windy Industries, in Chicago, Plans to Take

question 84

Multiple Choice

(Net present value table required) Windy Industries, in Chicago, plans to take advantage of the winds blowing in from Lake Michigan. Windy is developing a project to install a wind turbine that would generate electricity and reduce energy costs. The turbine would have an initial cost of $550,000 and would provide a net cost savings of $62,000 per year. The turbine will have a life of 25 years. If Windy assigns a discount rate of 10% to this project, what is the net present value (NPV) of the wind turbine?
Present Value of $1
Present Value of Annuity of $1

• A)$12,774
• B)-$12,774
• C)$1,112,774
• D)$550,000

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