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You are asked to develop the utility cost estimate for a new manufacturing facility. After some research you define the problem as finding the percent
You are asked to develop the utility cost estimate for a new manufacturing facility. After some research you define the problem as finding the percent worth of utility costs given the following data: MARR = 35% (not adjusted for inflation] Useful life = 25 years Utility: Electricity, water and natural gas Historical data reveals: Electricity costs increase at 8.5% Water Costs increase at 5.5% Natural gas increase at 6.5% First year estimates of the utility costs (in today's dollars) are as follows: Electricity will cost = $55,000 Water will cost = $18,000 Natural gas = $38,000
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