Question
A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $110,000, and it will save
A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $110,000, and it will save an estimated 300,000 kilowatt-hours (kWh) of electric power each year over a six-year period. A kilowatthour of electricity costs $0.10, and the company uses a MARR of 15% per year in its economic evaluations of refurbished systems. The market value of the system will be $ 0 at the end of six years, and additional annual operating and maintenance expenses are negligible. Use the FW method to determine whether this system should be installed
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