homeowner, Ms. Dee Young, needs to decide whether to install R-11 or R-19 insulation in the attic of her new home. The insulated area is 1,550 square feet. The upgrade from R-11 to R-19 insulation costs $0.05 per square foot. The upgraded insulation is expected to save Ms. Dee Young approximately 440 kilowatt hours of energy usage per year. The planning horizon is 22 years and electricity costs $0.10/kWh. MARR is 11% per year. Based on a future worth analysis, is the upgrade to R-19 insulation economically justified? The future worth of R-19 insulation is $ ? Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places. The tolerance is +0
homeowner, Ms. Dee Young, needs to decide whether to install R-11 or R-19 insulation in the attic of her new home. The insulated area is 1,550 square feet. The upgrade from R-11 to R-19 insulation costs $0.05 per square foot. The upgraded insulation is expected to save Ms. Dee Young approximately 440 kilowatt hours of energy usage per year. The planning horizon is 22 years and electricity costs $0.10/kWh. MARR is 11% per year. Based on a future worth analysis, is the upgrade to R-19 insulation economically justified? The future worth of R-19 insulation is $ ? Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places. The tolerance is +0
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A new homeowner, Ms. Dee Young, needs to decide whether to install R-11 or R-19 insulation in the attic of her new home.
The insulated area is 1,550 square feet. The upgrade from R-11 to R-19 insulation costs $0.05 per square foot. The upgraded insulation is expected to save Ms. Dee Young approximately 440 kilowatt hours of energy usage per year.
The planning horizon is 22 years and electricity costs $0.10/kWh. MARR is 11% per year.
Based on a future worth analysis, is the upgrade to R-19 insulation economically justified?
The future worth of R-19 insulation is $ ?
Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places. The tolerance is +0.15.
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