Current Attempt in Progress A convention center is considering the installation of occupancy sensors to reduce the cost of lighting and temperature control in rooms that may be frequently unoccupied. 2 different sensors are being evaluated. Sensor A has a fixed delay but can cause frequent on/off cycling of the lights, HVAC, and ventilation systems. Sensor B is a self-optimizing sensor that uses recent room utilization to optimize the delays resulting in higher savings and less frequent cycling of systems. There are 80 rooms in the convention center. Installation of Sensor A in each room will cost $ 75/room and result in annual savings of approximately 800 kWh/room. Installation of Sensor B in each room will cost $ 190/room and result in annual savings of approximately 900 kWhíroom. The cost of electricity is $ 0.03/kWh. MARR is 10%/yr. Compare the future worth of each alternative (including do nothing) over a 5-year planning horizon using an investment portfolio approach, including residual capital in the investment pool. Click here to access the TVM Factor Table Calculator. The future worth for "do nothing" is s The future worth for sensor A is s The future worth for sensor Bis s Carry all interim calculations to 5 decimal places and then round your final answers to whole numbers. The tolerance is 5. alternative is preferred. Sensor A Do nothing Attempts: 0 of 1 used Submit Arswer Sensor B
Current Attempt in Progress A convention center is considering the installation of occupancy sensors to reduce the cost of lighting and temperature control in rooms that may be frequently unoccupied. 2 different sensors are being evaluated. Sensor A has a fixed delay but can cause frequent on/off cycling of the lights, HVAC, and ventilation systems. Sensor B is a self-optimizing sensor that uses recent room utilization to optimize the delays resulting in higher savings and less frequent cycling of systems. There are 80 rooms in the convention center. Installation of Sensor A in each room will cost $ 75/room and result in annual savings of approximately 800 kWh/room. Installation of Sensor B in each room will cost $ 190/room and result in annual savings of approximately 900 kWhíroom. The cost of electricity is $ 0.03/kWh. MARR is 10%/yr. Compare the future worth of each alternative (including do nothing) over a 5-year planning horizon using an investment portfolio approach, including residual capital in the investment pool. Click here to access the TVM Factor Table Calculator. The future worth for "do nothing" is s The future worth for sensor A is s The future worth for sensor Bis s Carry all interim calculations to 5 decimal places and then round your final answers to whole numbers. The tolerance is 5. alternative is preferred. Sensor A Do nothing Attempts: 0 of 1 used Submit Arswer Sensor B
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
4
Transcribed Image Text:Current Attempt in Progress
A convention center is considering the installation of occupancy sensors to reduce the cost of lighting and temperature control in
rooms that may be frequently unoccupied. 2 different sensors are being evaluated. Sensor A has a fixed delay but can cause frequent
on/off cycling of the lights, HVAC, and ventilation systems. Sensor Bis a self-optimizing sensor that uses recent room utilization to
optimize the delays resulting in higher savings and less frequent cycling of systems. There are 80 rooms in the convention center.
Installation of Sensor A in each room will cost $ 75/room and resuit in annual savings of approximately 800 kWh/room. Installation of
Sensor B in each room will cost $ 190/room and result in annual savings of approximately 900 KWh/room. The cost of electricity is $
0.03/kWh. MARR is 10%/yr. Compare the future worth of each alternative (including do nothing) over a 5-year planning horizon using
an investment portfolio approach, including residual capital in the investment pool.
Click here to access the TVM Factor Table Calculator.
The future worth for "do nothing" is $
The future worth for sensor A is $
The future worth for sensor Bis $
Carry all interim calculations to 5 decimal places and then round your final answers to whole numbers. The tolerance is +5.
alternative is preferred..
Sensor A
Do nothing
Attempts: 0 of 1 used Submit Answer
Sensor B
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education