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handwritten step by step solution please, engineering economics subject A company is looking at two heating options for a new research building. Gas heating Option:
handwritten step by step solution please, engineering economics subject
"A company is looking at two heating options for a new research building. Gas heating Option: the initial equipment would cost $265,000 right now. The maintenance costs are expected to be $2,000 per year, starting next year, for each of the next 20 years. The energy cost is expected to be $5,000, starting next year, and is expected to rise by 5% per year for each of the next 20 years. Geothermal Heating option: the equipment is expected to cost only $110,000 right now. There would be no energy cost with geothermal, but the maintenance costs are expected to be $10,000 per year, starting next year, for each of the next 20 years. The present worth analysis, at an interest rate of 8% per year, gives the following results :" a. PW(Gas) =284636 PW(Geothermal )=208180. Select Geothermal b. PW(Gas) =356426 PW(Geothermal )=208180. Select Geothermal c. None of these answers d. PW(Gas) =336790 PW(Geothermal )=279 970. Select Geothermal "A company is looking at two heating options for a new research building. Gas heating Option: the initial equipment would cost $265,000 right now. The maintenance costs are expected to be $2,000 per year, starting next year, for each of the next 20 years. The energy cost is expected to be $5,000, starting next year, and is expected to rise by 5% per year for each of the next 20 years. Geothermal Heating option: the equipment is expected to cost only $110,000 right now. There would be no energy cost with geothermal, but the maintenance costs are expected to be $10,000 per year, starting next year, for each of the next 20 years. The present worth analysis, at an interest rate of 8% per year, gives the following results :" a. PW(Gas) =284636 PW(Geothermal )=208180. Select Geothermal b. PW(Gas) =356426 PW(Geothermal )=208180. Select Geothermal c. None of these answers d. PW(Gas) =336790 PW(Geothermal )=279 970. Select GeothermalStep by Step Solution
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