Question
Can someone please help me? i've posted this question multiple times and no on will answer and i still cant figure it out. A small
Can someone please help me? i've posted this question multiple times and no on will answer and i still cant figure it out.
A small heat pump, including the duct system, now costs $2,500 to purchase and install. It has a useful life of 18 years and incurs annual maintenance expenses of $75 per year in real (year-zero) dollars over its useful life. A compressor replacement is required at the end of years 6 and 12 at a cost of $600 each in real dollars. The annual cost of electricity for the heat pump is $700 in year-zero dollars. Electricity prices are projected to increase at an annual rate of 10%. All other costs are expected to increase at 4%, which is the projected general price inflation rate. The firm's MARR, which includes an allowance for general price inflation, is 15% per year (im). No market value is expected from the heat pump at the end of the 18 years of service life.
What is the PW of owning and operating the heat pump?
What is the AW (Actual dollars) of owning and operating the heart pump?
What is the AW (real dollars) of owning and operating the heat pump?
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