The warehouse is supposed to be used for another 10 years


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, 700 per year to approximately $9, 500 per year. Johnson Corp. Desires to earn 15% ROI, and the cost of installing the insulation is expected to be $21,000. The warehouse is supposed to be used for another 10 years. Is the insulation project a good investment?

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Financial Management: The warehouse is supposed to be used for another 10 years
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