Geothermal energy is a renewable, sustainable energy resource. Geothermal systems are available for a wide variety of applications. Mr$.$ Naz Metz must replace his current system and is considering several options to make it more energy efficient. His current energy bill for heating and cooling is approximately $$6,000$ per year. Replacing his current system with a traditional heating and air conditioning split system $($HVAC system$)$ costs about $$10,000.$ This replacement system would reduce his annual energy bill by approximately $15\%$ due to increased efficiency of the condenser. As an alternative, Mr$.$ Metz could install a residential geothermal system. This system would cost approximately $$23,000$ but promises to reduce his annual energy cost to $50\%$ of its current level. The life expectancy of either system is $10$ years with neither system having a salvage value at that time. Mr$.$ Metz's personal MARR is $5\%$ peryear.

Part a

Correct Answer

Your answers are correct.

Based on an annual worth comparison of alternatives, which system is preferred?

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The annnual worth of HVAC system is $

The annnual worth of geothermal system is $

Carry all interim calculations to $5$ decimal places and then round your final answers to $2$ decimal places. The tolerance is $+-0\mathrm{.}20.$

Geothermal system

is preferred.

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Hint

Solution

Attempts: $3$ of $3$ used

Partb

Your answer is incorrect.

At what value of MARR would the systems be considered equivalent based on an annual worth comparison?

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$8$

I NEED HELP WITH PART B PLZ AND THANKS