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An office building s considering converting om a coal-burning fumace to one that bums either fuel oil or natural gas. The st o converting to

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An office building s considering converting om a coal-burning fumace to one that bums either fuel oil or natural gas. The st o converting to fuel oil s estimated to be $76,000 tialy: annual operating expenses are estimated to be $3,500 less than that experienced when using the coal fumace. Approximately 140,000 Btus are produced per gallon of fuel oil; fuel oil is anticipated to cost $2.31 per gallon. The cost of converting to natural gas is estimated to be $62,000 initially, additionally, annual operating and maintenance expenses are estimated to be $6,500 less than that for the coal-burning furnace. Approximately 1,000 Btus are produced per cubic foot of natural gasit is estimated that natural gas will cost $0.06 per cubic foot. A planning horizon of 18 years is to be used. Zero market values and a MARR of 9% 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 AVVs if Btu requirement varies over 30% of the breakeven amount Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. The breakeven number of Btus is inBtus per year. (Round to one decimal place.) Determine AWS if the Btu requirement varies over 30% of the breakeven amount. (Round to the nearest hundreds.) Annual Worth, $ % Change in Breakeven Number of Btus oil Gas -30 -10 0 10 20 30 nter vour answer in each of the answer boxes An office building s considering converting om a coal-burning fumace to one that bums either fuel oil or natural gas. The st o converting to fuel oil s estimated to be $76,000 tialy: annual operating expenses are estimated to be $3,500 less than that experienced when using the coal fumace. Approximately 140,000 Btus are produced per gallon of fuel oil; fuel oil is anticipated to cost $2.31 per gallon. The cost of converting to natural gas is estimated to be $62,000 initially, additionally, annual operating and maintenance expenses are estimated to be $6,500 less than that for the coal-burning furnace. Approximately 1,000 Btus are produced per cubic foot of natural gasit is estimated that natural gas will cost $0.06 per cubic foot. A planning horizon of 18 years is to be used. Zero market values and a MARR of 9% 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 AVVs if Btu requirement varies over 30% of the breakeven amount Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. The breakeven number of Btus is inBtus per year. (Round to one decimal place.) Determine AWS if the Btu requirement varies over 30% of the breakeven amount. (Round to the nearest hundreds.) Annual Worth, $ % Change in Breakeven Number of Btus oil Gas -30 -10 0 10 20 30 nter vour answer in each of the answer boxes

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