A retrofittedspace-heating system is being considered for a small office building. The system can be purchased and installed for $128,000, and it will save an estimated 270,000 kilowatt-hours (kWh) of electric power each year over a six-year period. Akilowatt-hour of electricity costs $0.09. The marketvalue, additional annual operating and maintenance expenses are negligible. What is thebenefit-cost ratio of the project if the general inflation rate is 4% peryear? The market interest rate (im) is 19% peryear, and the annual savings are expressed inyear-zero dollars. Use thebenefit-cost method to make a recommendation.

A retrotted spaceheating system is being considered for a small ofce building. The system can he purchased and installed for $128,0. and it will save an estimated ETDIJDD kilowatthours {kWh} of electric power each year over asixyear period. A kilowatthour of electricity costs $0.09. The market value, additional annual operating and maintenance expenses are negligible. 1u'lnl'hat is the benetcost ratio of the project if the general ination rate is 4% per year? The market interest rate [I'm] is 19% per year, and the annual savings are expressed in yearzero dollars. Use the benetcost method to make a recommendation. a Click the icon to 1u'iew the interest and annuity table for discrete compounding when the MARR is 19% per year. a Click the icon to 1wiew the interest and annuity table for discrete compounding when the MARR is 4% per year. The benetcost ratio of the system with PW is D. [Round to two decimal places.) According to the B-C ratio method, the project is _. Discrete Compounding; i = 19% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FIA PIA AIF AIP 1.1900 0.8403 1.0000 0.8403 1.0000 1.1900 1.4161 0.7062 2.1900 1.5465 0.4566 0.6466 1.6852 0.5934 3.6061 2.1399 0.2773 0.4673 2.0053 0.4987 5.2913 2.6386 0.1890 0.3790 2.3864 0.4190 7.2966 3.0576 0.1371 0.3271 0 0 - O U A W N - 2.8398 0.3521 9.6830 3.4098 0.1033 0.2933 3.3793 0.2959 12.5227 3.7057 0.0799 0.2699 4.0214 0.2487 15.9020 3.9544 0.0629 0.2529 4.7854 0.2090 19.9234 4.1633 0.0502 0.2402 10 5.6947 0.1756 24.7089 4.3389 0.0405 0.2305Discrete Compounding; i =4% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FIA PIA AIF AIP 1.0400 0.9615 1.0000 0.9615 1.0000 1.0400 1.0816 0.9246 2.0400 1.8861 0.4902 0.5302 1.1249 0.8890 3.1216 2.7751 0.3203 0.3603 1.1699 0.8548 4.2465 3.6299 0.2355 0.2755 1.2167 0.8219 5.4163 4.4518 0.1846 0.2246 1.2653 0.7903 6.6330 5.2421 0.1508 0.1908 1.3159 0.7599 7.8983 6.0021 0.1266 0.1666 1.3686 0.7307 9.2142 6.7327 0.1085 0.1485 1.4233 0.7026 10.5828 7.4353 0.0945 0.1345 10 1.4802 0.6756 12.0061 8.1109 0.0833 0.1233