1) Consider two different options for heating of a new indoor pool. The first option is to heat all the water year-round using a natural gas boiler, while the second option is to supplement the natural gas heating with a solar thermal system. The cost assumptions are listed below. Assuming an analysis period of 15 years, a discount rate of 10% and no fuel inflation, what is the life cycle cost of each option and what is the net present value of the solar system compared to solely heating with natural gas? Now consider a fuel inflation rate of 5%, what is the NPV of selection option 2 instead of option 1? Option Initial investment for boiler, pumps, and controls is $9,000 Boiler is rated at 100,000 Btu/hr and on average operates at a capacity factor of 50% Natural gas currently cost $1.35/therm, assume no inflation Negligible O&M Option 2 Initial investment for boiler, pumps, and controls is $9,000 plus $20,000 for the solar thermal system after state and federal tax benefits. Solar provides 65% of the heating load of the pool Same NG prices as option Negligible O&M 1) Consider two different options for heating of a new indoor pool. The first option is to heat all the water year-round using a natural gas boiler, while the second option is to supplement the natural gas heating with a solar thermal system. The cost assumptions are listed below. Assuming an analysis period of 15 years, a discount rate of 10% and no fuel inflation, what is the life cycle cost of each option and what is the net present value of the solar system compared to solely heating with natural gas? Now consider a fuel inflation rate of 5%, what is the NPV of selection option 2 instead of option 1? Option Initial investment for boiler, pumps, and controls is $9,000 Boiler is rated at 100,000 Btu/hr and on average operates at a capacity factor of 50% Natural gas currently cost $1.35/therm, assume no inflation Negligible O&M Option 2 Initial investment for boiler, pumps, and controls is $9,000 plus $20,000 for the solar thermal system after state and federal tax benefits. Solar provides 65% of the heating load of the pool Same NG prices as option Negligible O&M