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Correct answer required An environmentally friendly 2,900 -square-foot green home ( 99% air tight) costs about 9% more to construct than a same-sized conventional home.

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An environmentally friendly 2,900 -square-foot green home ( 99% air tight) costs about 9% more to construct than a same-sized conventional home. Most green homes can save 15% per year on energy expenses to heat and cool the living space. For a $266,000 conventional home with a heating and cooling bill of $3,000 per year, how much would have to be saved in energy expenses per year to justify this home (i.e., B-C ratio greater than or equal to one)? The discount rate is 11% per year, and the expected life of the home is 24 years. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. would have to be saved in energy expenses per year to justify this home. (Round to the nearest dollar.)

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