A small heat pump, including the duct system, now costs
$2 comma 6002,600
to purchase and install. It has a useful life of 15 years and incurs annual maintenance expenses of
$125125
per year in real (year-zero) dollars over its useful life. A compressor replacement is required at the end of the eighth year at a cost of
$400400
in real dollars. The annual cost of electricity for the heat pump is
$700700,
based on present prices. Electricity prices are projected to increase at an annual rate of
1010%.
All other costs are expected to increase at
66%,
which is the projected general price inflation rate. The firm's MARR, which includes an allowance for general price inflation, is
1212%
per year
(im).
No market value is expected from the heat pump at the end of 15 years.
LOADING...
Click the icon to view the interest and annuity table for discrete compounding when
iequals=66%
per year.
LOADING...
Click the icon to view the interest and annuity table for discrete compounding when
iequals=1010%
per year.
LOADING...
Click the icon to view the interest and annuity table for discrete compounding when
iequals=1212%
per year.
a. What is the AW, expressed in actual dollars, of owning and operating the heat pump?
The AW is
$nothing .
A small heat pump, indluding the duct system, now costs $2,600 to purchase and install. It has a useful life of 15 years and incurs annual maintenance expenses of $125 per year in real (year-zero) dollars over its useful life. A compressor replacement is required at the end of the eighth year at a cost of $400 in real dollars. The annual cost of electricity for the heat pump is $700, based on present prices. Electricity prices are projected to increase at an annual rate of 10% All other costs are expected to increase at 6%, which is he projected general p ce inflation rate The firm's MARR, which includes an allowance or general price inflation s 12% per year No market value s expected from the heat pump at the end of 15 years. Click the icon to view the interest and annuity table for discrete compounding when i-6% per year Click the icon to view the interest and annuity table for discrete compounding when 1-10% per year. Click the icon to view the interest and annuity table for discrete compounding when 12% per year. a. What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is s(Round to the nearest dollar.) 02158|64467|0 8 8 7 5-87 06253|95732|46051|74 07016 0876-54433|22 10000-00000-0 0000-00 02158|64467|0 8 8 7 5-87 06253|95732|46051|74 07016-20876-5 4 4 33-22 04321|11000|0 0 0 0 0-0 0 1 0 0 0 0|00000-00000-00 15998|34906-17471|76 95690|58494 53366|31 03869-56354 91060 97417|38371|48136 01233|44556|66777-78 954|23705|77 00001-62 001 013 12346-79 A|0 0 0 1 557597-1. 459 135-8 1 471-50 14309-52515-5 6 7 3 4-68 3645|08939|77 5 1863-19 33222-21 96130 -00000-00000-0 0 0 0 0|00 00015|67697|14352-05 001 0-18373|38 459-53 135-8 1471|50 |12345|67 N123456789 10 11 07324-213 0169 0-44798-4 8 1506-3 |66554-4 |391 4108 10000-00000-0 0000-0 07324-213 01697|391 07905-29865 44332-2 04221-10000 00000-0 10000-00000-0 0000-0 0-4 4798-4 7-8 1506-3 oG - 91838|48622|74529-0 0174|13780|7 4380-4 1 9030-166 86406-159 5-392 69 4 01233|44455|5 6 6 6 6-6 0777|61167|3 929-3 297-5 |61032-7 0 38-2 nnA|0 0 4 925995 0247-04827-2 12346801112 92854|63960|57267|1 27157-6 99136-0 7694 0 vP_8 7 7 6 554433-2 2 2 2 11. oG - 00000-00000-0 0000-0 04953|87018|50516|4 30635|86373|0 0-79687-3 1-4 8 3 8 4-1 7 457-924 1 1 N123 4567890123456 More Info Discrete Compounding: 1-6% Single Payment Uniform Series Capital Recovery Factor To Find A Given P A/P 1.0600 0.5454 0.3741 0.2886 0.2374 0.2034 0.1791 0.1610 Compound Amount Compound Amount Factor To Find F Given A FIA 1.0000 2.0600 3.1836 4.3746 5.6371 6.9753 8.3938 9.8975 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4854 0.3141 0.2286 0.1774 0.1434 0.1191 0.1010 Present Present Worth Factor To Find P Given A P/A 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 Factor Worth Factor To Find F Given P F/P 1.0600 1.1236 1.1910 1.2625 1.3382 1.4185 1.5036 1.5938 To Find P Given F P/F 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 4 6 Print Done A small heat pump, indluding the duct system, now costs $2,600 to purchase and install. It has a useful life of 15 years and incurs annual maintenance expenses of $125 per year in real (year-zero) dollars over its useful life. A compressor replacement is required at the end of the eighth year at a cost of $400 in real dollars. The annual cost of electricity for the heat pump is $700, based on present prices. Electricity prices are projected to increase at an annual rate of 10% All other costs are expected to increase at 6%, which is he projected general p ce inflation rate The firm's MARR, which includes an allowance or general price inflation s 12% per year No market value s expected from the heat pump at the end of 15 years. Click the icon to view the interest and annuity table for discrete compounding when i-6% per year Click the icon to view the interest and annuity table for discrete compounding when 1-10% per year. Click the icon to view the interest and annuity table for discrete compounding when 12% per year. a. What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is s(Round to the nearest dollar.) 02158|64467|0 8 8 7 5-87 06253|95732|46051|74 07016 0876-54433|22 10000-00000-0 0000-00 02158|64467|0 8 8 7 5-87 06253|95732|46051|74 07016-20876-5 4 4 33-22 04321|11000|0 0 0 0 0-0 0 1 0 0 0 0|00000-00000-00 15998|34906-17471|76 95690|58494 53366|31 03869-56354 91060 97417|38371|48136 01233|44556|66777-78 954|23705|77 00001-62 001 013 12346-79 A|0 0 0 1 557597-1. 459 135-8 1 471-50 14309-52515-5 6 7 3 4-68 3645|08939|77 5 1863-19 33222-21 96130 -00000-00000-0 0 0 0 0|00 00015|67697|14352-05 001 0-18373|38 459-53 135-8 1471|50 |12345|67 N123456789 10 11 07324-213 0169 0-44798-4 8 1506-3 |66554-4 |391 4108 10000-00000-0 0000-0 07324-213 01697|391 07905-29865 44332-2 04221-10000 00000-0 10000-00000-0 0000-0 0-4 4798-4 7-8 1506-3 oG - 91838|48622|74529-0 0174|13780|7 4380-4 1 9030-166 86406-159 5-392 69 4 01233|44455|5 6 6 6 6-6 0777|61167|3 929-3 297-5 |61032-7 0 38-2 nnA|0 0 4 925995 0247-04827-2 12346801112 92854|63960|57267|1 27157-6 99136-0 7694 0 vP_8 7 7 6 554433-2 2 2 2 11. oG - 00000-00000-0 0000-0 04953|87018|50516|4 30635|86373|0 0-79687-3 1-4 8 3 8 4-1 7 457-924 1 1 N123 4567890123456 More Info Discrete Compounding: 1-6% Single Payment Uniform Series Capital Recovery Factor To Find A Given P A/P 1.0600 0.5454 0.3741 0.2886 0.2374 0.2034 0.1791 0.1610 Compound Amount Compound Amount Factor To Find F Given A FIA 1.0000 2.0600 3.1836 4.3746 5.6371 6.9753 8.3938 9.8975 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4854 0.3141 0.2286 0.1774 0.1434 0.1191 0.1010 Present Present Worth Factor To Find P Given A P/A 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 Factor Worth Factor To Find F Given P F/P 1.0600 1.1236 1.1910 1.2625 1.3382 1.4185 1.5036 1.5938 To Find P Given F P/F 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 4 6 Print Done
