An office building is considering converting from a coal-burning furnace to one that burns either fuel oil or natural gas. The cost of converting to fuel oil is estimated to be $75,000 initially; annual operating expenses are estimated to be $3,000 less than that experienced when using the coal furnace. Approximately 140,000. Btus are produced per gallon of fuel oil; fuel oil is anticipated to cost $2.04 per gallon. The cost of converting to natural gas is estimated to be $58,000 initially; additionally, annual operating and maintenance expenses are estimated to be $6,000 less than that for the coal-burning furnace. Approximately 1,000 Btus are produced per cubic foot of natural gas; it is estimated that natural gas will cost $0.05 per cubic foot. A planning horizon of 19 years is to be used. Zero market values and a MARR of 12% per year are appropriate. Perform a sensitivity analysis for the annual Btu requirement for the heating system. (Hint: First calculate the breakeven number of Btus (in thousands). Then determine AWs if Btu requirement varies over plus or minus30% of the breakeven amount.)...

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per year.The breakeven number of Btus is nothing million Btus per year. (Round to one decimal place.)Determine AWs if the Btu requirement varies over plus or minus30% of the breakeven amount. (Round to the nearest hundreds.)

		Annual Worth, $
% Change in Breakeven Number of Btus		Oil		Gas
minus30		nothing		nothing

minus20

nothing

nothing

minus10

nothing

nothing

0

nothing

nothing

10

nothing

nothing

20

nothing

nothing

30

nothing

nothing

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