You can insulate your home for $7,200. You figure you can save 15% per year on your heating bill if you insulate. Your home was bought 15 years ago for $38,500. You figure real estate prices have gone up 16% each year. You plan to live in the house another 10 years. Your home has five bedrooms, 2367 square feet and requires 5400 BTU's per hour to heat. You heat with oil and use 175 barrels of oil per year. Oil currently costs $25 per barrel. Money is worth 5% to you. Should you insulate your home. Why?

Answer 1

It falls under Time Value of Money topic...