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A retrofitied space-heating system is being considered for a small ofice building. The system can be purchased and irstalied for $90,000, and it will save

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A retrofitied space-heating system is being considered for a small ofice building. The system can be purchased and irstalied for $90,000, and it will save an estimated 150,000klig. of electric power each year over a five-year period. A klowatthour of electricity costs 50.12, and the company uses a MARR of 10% per year in its coonomic evaluations of refurbished systems. The market value of the systern will be $16,000 at the end of five years, and additional openting and mansenance expenses are $3,600 per year, Use the benefit-cost method to make o secommendation. Click the icon to view the interest and annuty table for discrete compounding when the MARR is 10\% per year. The conventionar B-C ratio of the syatem is (Round to two decimal piacos.) This B.C ratio indicates that the project is

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