What is the maximum amount the building's owner would be willing to pay for the low-e windows in order for them to remain economically attractive? Click here to access the TVM Factor Table Calculator. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. Enter your answer as a positive value. The tolerance is ±3.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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**Cost Calculation for Low-E Windows Installation**

What is the maximum amount the building's owner would be willing to pay for the low-e windows in order for them to remain economically attractive?

[Click here](#) to access the TVM Factor Table Calculator.

$ [_________]

*Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. Enter your answer as a positive value. The tolerance is ±3.*
Transcribed Image Text:**Cost Calculation for Low-E Windows Installation** What is the maximum amount the building's owner would be willing to pay for the low-e windows in order for them to remain economically attractive? [Click here](#) to access the TVM Factor Table Calculator. $ [_________] *Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. Enter your answer as a positive value. The tolerance is ±3.*
**Exploring Energy Conservation in Building Design: Low-E Windows**

Economic solar energy and energy from fusion have been identified as two significant challenges in engineering. As efforts continue to tackle these issues, conserving energy from non-renewable sources remains crucial. One practical approach is the installation of low thermal emissivity windows, known as low-e windows, which can significantly contribute to energy conservation in buildings.

When installed on a small office building, the cost of these windows is projected to be $11,000. They have an expected lifespan of 10 years without any salvage value at the end. In the first year alone, the anticipated energy savings from these windows is estimated to be $2,275. As fossil fuel costs escalate, the savings are expected to increase by $225 each subsequent year. 

The Minimum Acceptable Rate of Return (MARR) is 12% per annum, and the preferred economic evaluation metric in this context is annual worth.
Transcribed Image Text:**Exploring Energy Conservation in Building Design: Low-E Windows** Economic solar energy and energy from fusion have been identified as two significant challenges in engineering. As efforts continue to tackle these issues, conserving energy from non-renewable sources remains crucial. One practical approach is the installation of low thermal emissivity windows, known as low-e windows, which can significantly contribute to energy conservation in buildings. When installed on a small office building, the cost of these windows is projected to be $11,000. They have an expected lifespan of 10 years without any salvage value at the end. In the first year alone, the anticipated energy savings from these windows is estimated to be $2,275. As fossil fuel costs escalate, the savings are expected to increase by $225 each subsequent year. The Minimum Acceptable Rate of Return (MARR) is 12% per annum, and the preferred economic evaluation metric in this context is annual worth.
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