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please show me how to do this step by step! thanks 11.10 (0) owns large, poorly home. His annual fuel bill for home heating averages

please show me how to do this step by step! thanks image text in transcribed
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11.10 (0) owns large, poorly home. His annual fuel bill for home heating averages S300 per year. An contractor suggests to him the following options. Plan A. Insulate the attic. If he does this, will permane reduce his fuel consumption by 15%. Total cost of insulating the atti perm Plan B. Insulate the attic and the walls. If he does this, he will nently reduce his fuel consumption by 20%. Total cost of insulating the attic and the walls is $500. Plan C. Insulate the attic and the walls, and install a solar heating unit. does permanently reduce fuel zero. Totalcost of this option is $7,000 for the solar heater and S500 for the insulating, (a) Assume for simplicity of calculations that the house and the insulation will last forever. Calculate the present value of the dollars saved on fuel from each of the three options if the interest rate is 10%. The present values are: Plan A? Plan B? Plan C? (b) Each plan expenditure of money to undertake. The dif ference between the present value and the present cost of each plan is Plan A? Plan B? Plan C? (c) If the price of fuel expected to remain constant, which option should he choose if he can borrow and lend at an annual interest of 10%? rate (d) which option should he choose if he can borrow and lend at an annu rate of 5%

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