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9. Your company is considering replacing all of its standard light bulbs with a super...

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Finance

9. 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 company's discount rate for capital budgeting projects of this nature is 8%. What is the NPV of this project?

A. -$7,459

B. -$6,906

C. $23,245

D. $100,926

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