Problem 6-5 (algorithmic) Question Help Your company is environmentally conscious and is considering two heating options for a new research building. What you know about each option is below, and your company will use an annual interest rate (MARR) of 5% for this decision. Which is the lower cost option for the company? Click the icon to view the additional information about the options. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 3% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year. 5 The PW of the Gas Heating Option is $ (R * More Info - X Gas Heating Option: The initial equipment and installment of the natural gas system would cost $215.000 right now. The maintenance costs of the equipment are expected to be $3,000 per year, starting next year, for each of the next 17 years. The energy cost is expected to be $5,000 starting next year and is expected to rise by 3% per year for each of the next 17 years due to the price of natural gas increasing. Geothermal Heating Option: Because of green energy incentives provided by the government, the geothermal equipment and installation are expected to cost only $195,000 right now, which is cheaper than the gas lines. There would be no energy cost with geothermal, but because this is a relatively newer technology the maintenance is expected to be $12,000 per year, staring next year, for each of the next 20 years. Print Done