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Anelectricutilitycompanyisgoingtoperformenergyauditsonhomesthatare atleast30yearsold.Theutilityestimatesthathomeownerscansave$5persquare footannuallyastheresultofweatherization,atticinsulation,newductwork,and highefficiencyheatpumps.Fifteenyearsistheexpectedlifeofthisweatherization incentive,andtheannualinterestrateis8%.Howmuchisjustifiedtospendnow onthisprojectfora1,500-square-foothome?

Anelectricutilitycompanyisgoingtoperformenergyauditsonhomesthatare atleast30yearsold.Theutilityestimatesthathomeownerscansave$5persquare footannuallyastheresultofweatherization,atticinsulation,newductwork,and highefficiencyheatpumps.Fifteenyearsistheexpectedlifeofthisweatherization incentive,andtheannualinterestrateis8%.Howmuchisjustifiedtospendnow onthisprojectfora1,500-square-foothome?

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