Question
In: Economics
The warehouse manager at Johnson Cor. is considering installing additional insulation in the warehouse. He estimates...
The warehouse manager at Johnson Cor. is considering installing additional insulation in the warehouse. He estimates that the annual savings would be a reduction in heating cost from the current $16,000 per year to approximately $12,000 per year. Johnson Corp. Desires to earn 8% ROI, and the cost of installing the insulation is expected to be $20,000. How many years does the warehouse have to run in order to justify the insulation project?
Solutions
Expert Solution
Number of years required to justify the investment is 6.65 years.
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Rahul Sunny answered 2 years agoRelated Solutions
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