Insulated concrete forms (ICF) can be used as a substitute for traditional wood framing in building construction.
Heating and cooling bills will be about 52% less than in a similar wood-frame home in Vermont.
An ICF home will be approximately 11% more expensive to construct than a wood-frame home.
A typical 2,200 square foot home costs $140 per square foot to build with wood framing in Vermont and costs $294 per month (on average) to heat or cool.
What is the IRR on the incremental investment in an equivalent-sized ICF home?
The home's residual value with both framing methods in 20 years is expected to be $280,000.
Assume annual compounding The IRR is (Round to the nearest whole number)