not use ai please 2. A home buyer obtained a mortgage of $500,000 for an annual interest rate of 6% over 30 years.A designer suggested using a high-performance heat pump ($20,000) to replace theconventional HVAC systems ($7,000). This extra cost is taken from the extra loan (beyond theinitial $500,000). What is the extra monthly payment if using the high-performance heat pump?If the annual electricity saving using the high-performance heat pump is 2000 kWh. Assumethe electrical price is $0.08/kWh during Year-1 and it will increase 10% every year since Year-2. What is the simple payback period? If considering the annual electricity rate increase, whatwill be the total energy savings during the 30-years in the present value if the inflation rate is3% from Year-2? Assume both the high-performance and conventional systems have a lifetimeof $30 years. Should the home buyer consider the suggestion and why?

explanation 1. Extra Monthly Payment: Adding a $20,000 loan for the heat pump increases the monthly…

Answered: 2. A home buyer obtained a mortgage of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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