A small business owner estimates that the heat loss through the exterior walls of her warehouse will cost approximately $4,000 per year. A local company is offering insulation that can reduce the heat loss by 80%, with an installation cost of $17,000 now. She intends to keep the warehouse for 10 years. If the cost of the heat loss increases by $300 per year, after next year, what is the IRR?
a. 12.32%
b.13.44%
c.19.23%
d.15.52%
e.16.15%