A 2000 square foot house in new jersey costs 1725 each, Financial Management

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A 2000 square foot house in new jersey costs 1725 each

A 2,000 square foot house in New Jersey costs $1,725 each winter to heat with its existing oil-burning furnace. For an investment of $5,000, a natural gas furnace can be installed, and the winter heating bill is estimated to be $1,000. If the homeowner’s MARR is 6% per year, what is the discounted payback period of this proposed investment?

Note: Your saving need to be consider in finding payback period.

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Financial Management: A 2000 square foot house in new jersey costs 1725 each

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