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10. Using the same information in the previous problem (copied below), calculate the IRR of...

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Finance

10. Using the same information in the previous problem (copied below), calculate the IRR of the project. Your company is considering replacing all of its standard light bulbs with a super energy efficient version. The initial cost to make replacements will be $450,000. The firm estimates the light bulbs will provide electricity savings of $85,000 per year over 7 years. Assume your comany's discount rate for capital budgeting projects of this nature is 8%. What is the NPV of this project?

A. -0.45%

B. 3.42%

C. 7.51%

D. 10.2%

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