Question
1. Retrofitting: The owner found a showerhead that costs $50, but only uses 2.3 gallons/minute. He wants to know if this would be a better
1. Retrofitting: The owner found a showerhead that costs $50, but only uses 2.3 gallons/minute. He wants to know if this would be a better deal (5-year ROI) than the $40 showerhead?
2. Life-Cycle Costing: The owner does not believe the manufacture's estimates of life expectancy for the CFLs. He thinks it is probably 5 years instead of 10. He also thinks that each CFL will probably use 50 KWh/year instead of 40. He wants to know if they would still be the better option with these assumptions.
3. Turn Cost Estimates: The owner thinks you over-estimated the condition of each unit and does not feel that they are as bad as you claim. He would like to see the condition ratings adjusted down by 1 point for each unit (except Unit 5 which is already rated as a 1), and the budget values for each month adjusted accordingly.
4. Reserves: The owner has secured another bid for the roof replacement. This estimate came in at $120,000 instead of $150,000. Assuming he keeps his reserves in a non-interest bearing account, he would like to know how much he should put into his reserves account this year using the new estimate.
5. Reserves: You agree that the new roof estimate is probably more accurate, but strongly insist that the owner put their funds in an interest bearing account. To prove your point, you find an account that will pay 4% interest per year. With the new roof estimate and a reserve account that will make 4% per year, how much would the owner need to put into reserves each year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started