A retrofitted space-heating system is being considered for a small office building. The system can be...
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A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $123,000, and it will save an estimated 200,000 kilowatt-hours (kWh) of electric power each year over a eight-year period. A kilowatt-hour of electricity costs $0.15, and the company uses a MARR of 10% per year in its economic evaluations of refurbished systems. The market value of the system will be $24,600 at the end of eight years, and additional operating and maintenance expenses are $13,500 per year. Use the benefit-cost method to make a recommendation. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. The conventional B-C ratio of the system is (Round to two decimal places.) This B-C ratio indicates that the project is not acceptable A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $123,000, and it will save an estimated 200,000 kilowatt-hours (kWh) of electric power each year over a eight-year period. A kilowatt-hour of electricity costs $0.15, and the company uses a MARR of 10% per year in its economic evaluations of refurbished systems. The market value of the system will be $24,600 at the end of eight years, and additional operating and maintenance expenses are $13,500 per year. Use the benefit-cost method to make a recommendation. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. The conventional B-C ratio of the system is (Round to two decimal places.) This B-C ratio indicates that the project is not acceptable
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