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Economical solar energy and energy from fusion have been identified as two of engineering's grand chailenges. While work continues on these grand challenges, conservation of

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Economical solar energy and energy from fusion have been identified as two of engineering's grand chailenges. While work continues on these grand challenges, conservation of energy from non-renewable sources is vital. On a practical level, installing low thermal emissivity windows (low-e windows) on buildings can contribute to energy conservation. Installing low-e windows on a small office building is estimated to cost $8,000. The windows are expected to last 7 years and have no salvage value at that time. The energy savings from the windows are expected to be $2,275 in the 1st year. After the 1 st year, the savings are expected to increase by $200 each year due to escalating fossil fuel costs. MARR is 12% per year and annual worth is the preferred measure of economic worth. What is the maximum amount the building's owner would be willing to pay for the low-e windows in order for them to remain economically attractive? Click here to access the TVM Factor Table Calculator. Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. Enter your answer as a positive value. The tolerance is \pm 3 . eTextbook and Media Hint Assistance Used P is the amount of costs, P=$8,000. A is the energy savings from the windows expected in the ist year, A=$2,275. G is the amount by which the savings are expected to increase each year, G=$200. lis the MARR. Note that inceds to be a decimal if using mathematical formula, r=0.12 for 12%, n is the expected number of years the low-e windows will last, n=7. The maximum price the bullding's owner would be willing to pay is a price that yields an annual worth of zero. This problem can be solved by using factor tables provided in Appendix A or by using a tabular setup in conjunction with the Goal Seek functionality

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