Option Number 2: Install a scotch marine steam boiler with a dual fuel burner Cost of Installing Boiler = $64,200 Cost of Installing Oil Storage and Supply System - $12,000 Cost of Installing Natural Gas Supply Piping and Controls = $25,000 Cost of Installing Mechanical Equipment Room Components - $20,000 Cost of Installing Boiler Venting System = $7,000 Cost of Engineering Fees and Building Permits = $20,000 Cost of Boiler Operating Permit = $1,800 Escalation Rate = 0% (Renewed every 3 years) Present Annual Cost for Fuel for Heat $86,930 Escalation Rate 5% Present Annual Cost for Fuel for Hot Water $59,120 Escalation Rate = 5% Present Annual OM&R Cost-$13,000 Escalation Rate = 3% Present Annual Water & Sewer Cost $850 Escalation Rate=4% Present Annual Cost of Boiler Insurance = $3,000 Escalation Rate -4% 3 Estimated Building Life 20 years Annual Interest Rate - 8% 22. Calculate the present value of the fuel costs for heat. (3) $ 23. Calculate the present value of the fuel costs for hot water. (3) $ 24. Calculate the present value of the OM&R costs. (3) 25. Calculate the present value of the insurance costs. (3) 26. Calculate the life cycle costs for this option. (Assume no residual value or disposal cost) (3) Option Number 2: Install a scotch marine steam boiler with a dual fuel burner Cost of Installing Boiler = $64,200 Cost of Installing Oil Storage and Supply System - $12,000 Cost of Installing Natural Gas Supply Piping and Controls = $25,000 Cost of Installing Mechanical Equipment Room Components - $20,000 Cost of Installing Boiler Venting System = $7,000 Cost of Engineering Fees and Building Permits = $20,000 Cost of Boiler Operating Permit = $1,800 Escalation Rate = 0% (Renewed every 3 years) Present Annual Cost for Fuel for Heat $86,930 Escalation Rate 5% Present Annual Cost for Fuel for Hot Water $59,120 Escalation Rate = 5% Present Annual OM&R Cost-$13,000 Escalation Rate = 3% Present Annual Water & Sewer Cost $850 Escalation Rate=4% Present Annual Cost of Boiler Insurance = $3,000 Escalation Rate -4% 3 Estimated Building Life 20 years Annual Interest Rate - 8% 22. Calculate the present value of the fuel costs for heat. (3) $ 23. Calculate the present value of the fuel costs for hot water. (3) $ 24. Calculate the present value of the OM&R costs. (3) 25. Calculate the present value of the insurance costs. (3) 26. Calculate the life cycle costs for this option. (Assume no residual value or disposal cost) (3)