Consider a homeowner who is replacing his 25-year old natural gas furnace that has an efficiency of 55 %. The homeowner is considering a conventional furnace that has an efficiency of 81 % and costs $1600 and a high efficiency furnace that has an efficiency of 95 % and costs $2700. The homeowner would like to buy the high-efficiency furnace if the savings from the natural gas pay for the additional cost in less than 8 years. If the homeowner presently pays $1200 a year for heating, determine if he should buy the conventional or high-efficiency model. per year. For the heater with 81% efficiency, the annual cost of heating is $ For the heater with 95% efficiency, the annual cost of heating is $ The homeowner should purchase the conventional model per year. Hints References eBook & Resources Hint #1