A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $111,000, and it will save an estimated 320,000 kilowat1-hours (kWh) of electric power each year over a four-year period. A kilowatt-hour of electricity costs $0.12, and the company uses a MARI f 18% per year in its economic evaluations of refurbished systems. The market value of the system will be $6,000 at the end of four years, and additional annual operating and maintenance expenses are negligible. Use the benefit-cost method to make a recommendation. O Click the icon to view the interest and annuity table for discrete compounding when t MARR is 18% per year he benefit-cost ratio of the system with PW is Round to two decimal places.)

A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $111,000, and it will save an estimated 320,000 kilowat1-hours (kWh) of electric power each year over a four-year period. A kilowatt-hour of electricity costs $0.12, and the company uses a MARI f 18% per year in its economic evaluations of refurbished systems. The market value of the system will be $6,000 at the end of four years, and additional annual operating and maintenance expenses are negligible. Use the benefit-cost method to make a recommendation. O Click the icon to view the interest and annuity table for discrete compounding when t MARR is 18% per year he benefit-cost ratio of the system with PW is Round to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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