A 2, 500 square foot house in New Jersey costs $1, 725 each winter to heat with its existing oil-burning furnace. For an investment of $6,000, a natural gas furnace can be installed, and the winter heating bill is estimated to be $1,000. If the homeowner's MARR is 8% per year, what is the discounted payback period of this proposed investment?
The discounted payback period of this proposed investment is 15 years.
The discounted payback period of this proposed investment is 13 years.
The discounted payback period of this proposed investment is 10 years.
The discounted payback period of this proposed investment is 9 years.