Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me answer this question! I will give a good review right away! Please neatly show work, Do not use excel as I do
Please help me answer this question! I will give a good review right away! Please neatly show work, Do not use excel as I do not understand it, and box the answer. Thank you very much!
A small heat pump now costs $2,600 to purchase and install. It has a projected useful life of 12 years and will incur annual maintenance costs of $100 per year in real (year-zero) dollars over the useful life. These costs are projected to increase at 4% per year, which is the expected general inflation rate. The annual cost of electricity for the heat pump is $700 in year-zero dollars. Electricity prices are projected to increase at an annual rate of 10%. The firm's MARR, which includes an allowance for general price inflation, is 15% per year (im). No market value is expected from the heat pump at the end of the 12 years of service life. Click the icon to view the interest and annuity table for discrete compounding when i = 15% per year. a. What is the PW of owning and operating the heat pump? The PW is $. (Round to the nearest dollar.) b. (i) What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is $. (Round to the nearest dollar.) (ii) What is the AW in real dollars of owning and operating the heat pump? The AW is $. (Round to the nearest dollar.) N 1 WN 4 5 6 Discrete Compounding; i = 15% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA PIA A/F 1.1500 0.8696 1.0000 0.8696 1.0000 1.3225 0.7561 2.1500 1.6257 0.4651 1.5209 0.6575 3.4725 2.2832 0.2880 1.7490 0.5718 4.9934 2.8550 0.2003 2.0114 0.4972 6.7424 3.3522 0.1483 2.3131 0.4323 8.7537 3.7845 0.1142 2.6600 0.3759 11.0668 4.1604 0.0904 3.0590 0.3269 13.7268 4.4873 0.0729 3.5179 0.2843 16.7858 4.7716 0.0596 4.0456 0.2472 20.3037 5.0188 0.0493 4.6524 0.2149 24.3493 5.2337 0.0411 5.3503 0.1869 29.0017 5.4206 0.0345 6.1528 0.1625 34.3519 5.5831 0.0291 7.0757 0.1413 40.5047 5.7245 0.0247 8.1371 0.1229 47.5804 5.8474 0.0210 9.3576 0.1069 55.7175 5.9542 0.0179 10.7613 0.0929 65.0751 6.0472 0.0154 12.3755 0.0808 75.8364 6.1280 0.0132 14.2318 0.0703 88.2118 6.1982 0.0113 16.3665 0.0611 102.4436 6.2593 0.0098 7 Capital Recovery Factor To Find A Given P A/P 1.1500 0.6151 0.4380 0.3503 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993 0.1911 0.1845 0.1791 0.1747 0.1710 0.1679 0.1654 0.1632 0.1613 0.1598 8 9 10 11 12 13 14 15 16 17 18 19 20 A small heat pump now costs $2,600 to purchase and install. It has a projected useful life of 12 years and will incur annual maintenance costs of $100 per year in real (year-zero) dollars over the useful life. These costs are projected to increase at 4% per year, which is the expected general inflation rate. The annual cost of electricity for the heat pump is $700 in year-zero dollars. Electricity prices are projected to increase at an annual rate of 10%. The firm's MARR, which includes an allowance for general price inflation, is 15% per year (im). No market value is expected from the heat pump at the end of the 12 years of service life. Click the icon to view the interest and annuity table for discrete compounding when i = 15% per year. a. What is the PW of owning and operating the heat pump? The PW is $. (Round to the nearest dollar.) b. (i) What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is $. (Round to the nearest dollar.) (ii) What is the AW in real dollars of owning and operating the heat pump? The AW is $. (Round to the nearest dollar.) N 1 WN 4 5 6 Discrete Compounding; i = 15% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA PIA A/F 1.1500 0.8696 1.0000 0.8696 1.0000 1.3225 0.7561 2.1500 1.6257 0.4651 1.5209 0.6575 3.4725 2.2832 0.2880 1.7490 0.5718 4.9934 2.8550 0.2003 2.0114 0.4972 6.7424 3.3522 0.1483 2.3131 0.4323 8.7537 3.7845 0.1142 2.6600 0.3759 11.0668 4.1604 0.0904 3.0590 0.3269 13.7268 4.4873 0.0729 3.5179 0.2843 16.7858 4.7716 0.0596 4.0456 0.2472 20.3037 5.0188 0.0493 4.6524 0.2149 24.3493 5.2337 0.0411 5.3503 0.1869 29.0017 5.4206 0.0345 6.1528 0.1625 34.3519 5.5831 0.0291 7.0757 0.1413 40.5047 5.7245 0.0247 8.1371 0.1229 47.5804 5.8474 0.0210 9.3576 0.1069 55.7175 5.9542 0.0179 10.7613 0.0929 65.0751 6.0472 0.0154 12.3755 0.0808 75.8364 6.1280 0.0132 14.2318 0.0703 88.2118 6.1982 0.0113 16.3665 0.0611 102.4436 6.2593 0.0098 7 Capital Recovery Factor To Find A Given P A/P 1.1500 0.6151 0.4380 0.3503 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993 0.1911 0.1845 0.1791 0.1747 0.1710 0.1679 0.1654 0.1632 0.1613 0.1598 8 9 10 11 12 13 14 15 16 17 18 19 20Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started