AM. Boisvert intends to convert the old oil heating system of its house and hesitates between natural gas and electricity. I anticipate that the savings he will be sufficiently interesting to justify such an investment. Mr. Boisvert has a hot water heating system which, in the opinion of a specialist listing, is in excellent condition. I will only have to convert his current old boiler. The costs installation of the 2 systems envisaged are presented in Table 6.9. Table 6.9 (problem 2) Installation costs of electric heating systems tricity and natural gas Electricity Natural gas 220 volt input box 1000 S Gas inlet $ 900 Boiler 900 700 Thermostat 200 Thermostat 200 Circulation pump 1000- Circulation pump Water heater 1000 600 Water heater 500 Workforce 1500 Workforce 700 Total 5200 S Total 4000 S Burner . The electrical system does not require any regular maintenance, it is however advisable to have it checked every year by a residential heating specialist, which costs $ 100. The natural gas system requires an annual maintenance plan at a cost of $ 200. the most recent invoices paid by Mr. Boisvert as well as the study the estimates provided by electric and gas heating contractors can predict costs annual maintenance and operation, presented in Table 6.10. Table 6.10 (problem 2) Annual costs of maintaining and operating the systems heating systems with oil, electricity and natural gas Fuel oil Electricity Natural gas Maintenance costs 500 S $ 100 $ 200 Heating costs 2000 1800 1400 Insurance costs 200 100 100 $ 2,700 2000 1700 S Total costs The interest rate on a loan required to finance this project is 12%. The duration chosen study is 20 years. Ignore the residual value of the 3 heating systems. We ask: a) devalue, by the rate T, t by th alue V, The profitability of a system conversion current heating to the electric system and natural gas system; b) to make a recommendation to Mr. Boisvert