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ABC Holdings, the owner of a 2 5 , 0 0 0 - square - foot warehouse building, just installed a 9 5 % -

ABC Holdings, the owner of a 25,000-square-foot warehouse building, just installed a 95%-efficiency HVAC system with a 25-year service life at a cost of $15.00 per square foot. The annual cost of energy consumption and associated operating expenses is estimated to be $2.00 per square foot. What is the approximate total life cycle cost of the HVAC system at a 11.5% discount rate? Ignore the rate of energy inflation. No other costs are considered.
95%- Efficient HCAV:
Study Period: 25 years
Building Size: 25000 sf
Initial Cost: $15/sf
Annual Energy Cost $2/sf

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