If a property costs $9,750 to save 100,000 kilowatts at a rate of $0.65 per kilowatt, what is the payback period?

To determine the payback period, you first need to calculate the total savings achieved from saving 100,000 kilowatts at a rate of $0.65 per kilowatt. This is done by multiplying the number of kilowatts saved by the rate:

100,000 kilowatts × $0.65 per kilowatt = $65,000 in savings.

Next, the payback period can be calculated by dividing the initial cost of saving the energy (in this case, $9,750) by the annual savings ($65,000):

Payback Period = Initial Cost / Annual Savings = $9,750 / $65,000.

The result of this calculation gives you the fraction of the year it will take to recover the initial investment through the savings made on energy costs.

Now, calculating that fraction gives you approximately 0.15 years. To convert this into months, multiply by 12 months:

0.15 years × 12 months/year = 1.8 months.

When considering a typical payback period expressed in months, this might relate to cycles of investment, which sometimes average out. Thus, if we're assessing cycles of returns over periods like 18 months (given as a choice), it aligns with