Consider a homeowner who is replacing his 25-yearold natural gas furnace that has an efficiency of 55 percent. The homeowner is considering a conventional furnace that has an efficiency of 82 percent and costs $1600 and a high-efficiency furnace that has an efficiency of 95 percent and costs $2700. The homeowner would like to buy the high-efficiency furnace if the savings from the natural gas pay for the additional cost in less than 8 years. If the homeowner presently pays $1200 a year for heating, determine if he should buy the conventional or high-efficiency model.

Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
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Consider a homeowner who is replacing his 25-yearold
natural gas furnace that has an efficiency of 55 percent.
The homeowner is considering a conventional furnace
that has an efficiency of 82 percent and costs $1600 and a
high-efficiency furnace that has an efficiency of 95 percent
and costs $2700. The homeowner would like to buy the
high-efficiency furnace if the savings from the natural
gas pay for the additional cost in less than 8 years. If the
homeowner presently pays $1200 a year for heating, determine
if he should buy the conventional or high-efficiency
model.

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