What is the net present value npv of this replacement


You buy fluorescent light bulbs for $31.73 to replace incandescent light bulbs in your home. You estimate that the new light bulbs will last 3 years and save you $19.51 per year on your power bill (assume the savings are realized at the end of each year). Your discount rate is 7.7%. What is the net present value (NPV) of this replacement project? Round to the nearest $0.01 (e.g., if your answer is $7.585, record it as 7.59).

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