A small heat pump now costs $2400 to purchase and install. It has a projected useful life of 12 years and will incur annual maintenance cost of $125 per year in real (year-zero) dollars over that useful life. These costs are projected to increase at 4% per year, which is the expected general inflation rate. The annual cost of electricity for the heat pump is $680 in year-zero dollars. Electricity prices are projected to increase at an annual rate of 9%. The firms MARR, which includes an allowance for general price inflation, is 12% per year. No market value is expected from the heat pump at the end of the 12 years of service life.

OP ONZ 2 1 2. 3 4 5 6 7 8 9 10 11 12 13 14 15 Discrete Compounding; 1= 12% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA P/A A/F 1.1200 0.8929 1.0000 0.8929 1.0000 1.2544 0.7972 2.1200 1.6901 0.4717 1.4049 0.7118 3.3744 2.4018 0.2963 1.5735 0.6355 4.7793 3.0373 0.2092 1.7623 0.5674 6.3528 3.6048 0.1574 1.9738 0.5066 8.1152 4.1114 0.1232 2.2107 0.4523 10.0890 4.5638 0.0991 2.4760 0.4039 12.2997 4.9676 0.0813 2.7731 0.3606 14.7757 5.3282 0.0677 3.1058 0.3220 17.5487 5.6502 0.0570 3.4785 0.2875 20.6546 5.9377 0.0484 3.8960 0.2567 24.1331 6.1944 0.0414 4.3635 0.2292 28.0291 6.4235 0.0357 4.8871 0.2046 32.3926 6.6282 0.0309 5.4736 0.1827 37.2797 6.8109 0.0268 6.1304 0.1631 42.7533 6.9740 0.0234 6.8660 0.1456 48.8837 7.1196 0.0205 7.6900 0.1300 55.7497 7.2497 0.0179 Capital Recovery Factor To Find A Given P A/P 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 0.1684 0.1614 0.1557 0.1509 0.1468 0.1434 0.1405 0.1379 16 17 18 Print Done a. What is the PW of owning and operating the heat pump? The PW is $ (Round to the nearest dollar.) b. (i) What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is $ (Round to the nearest dollar.) (ii) What is the AW in real dollars of owning and operating the heat pump? The AW is $ (Round to the nearest dollar.) OP ONZ 2 1 2. 3 4 5 6 7 8 9 10 11 12 13 14 15 Discrete Compounding; 1= 12% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA P/A A/F 1.1200 0.8929 1.0000 0.8929 1.0000 1.2544 0.7972 2.1200 1.6901 0.4717 1.4049 0.7118 3.3744 2.4018 0.2963 1.5735 0.6355 4.7793 3.0373 0.2092 1.7623 0.5674 6.3528 3.6048 0.1574 1.9738 0.5066 8.1152 4.1114 0.1232 2.2107 0.4523 10.0890 4.5638 0.0991 2.4760 0.4039 12.2997 4.9676 0.0813 2.7731 0.3606 14.7757 5.3282 0.0677 3.1058 0.3220 17.5487 5.6502 0.0570 3.4785 0.2875 20.6546 5.9377 0.0484 3.8960 0.2567 24.1331 6.1944 0.0414 4.3635 0.2292 28.0291 6.4235 0.0357 4.8871 0.2046 32.3926 6.6282 0.0309 5.4736 0.1827 37.2797 6.8109 0.0268 6.1304 0.1631 42.7533 6.9740 0.0234 6.8660 0.1456 48.8837 7.1196 0.0205 7.6900 0.1300 55.7497 7.2497 0.0179 Capital Recovery Factor To Find A Given P A/P 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 0.1684 0.1614 0.1557 0.1509 0.1468 0.1434 0.1405 0.1379 16 17 18 Print Done a. What is the PW of owning and operating the heat pump? The PW is $ (Round to the nearest dollar.) b. (i) What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is $ (Round to the nearest dollar.) (ii) What is the AW in real dollars of owning and operating the heat pump? The AW is $ (Round to the nearest dollar.)