Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are given the following data for ten buildings in a Midwestern U.S. city, with building size in square feet and annual energy consumption for

You are given the following data for ten buildings in a Midwestern U.S. city, with building size in square feet and annual energy consumption for heating in million BTUs. The data are to be used to estimate energy requirements and heating costs for a proposed new building.

building

building sq ft mill Btu

1

46300 3805
2 30010 3355
3 26030 2976
4 16060 2556
5 21660 2463
6 38950 2920
7 22710 2408
8 15360 2393
9 25750 2306
10 29170 2267

sq ft mill Btu

a. Use the data given to estimate the energy consumption for the new building, assuming it has 32,000 sq ft of area. b. If the expected heat energy costs for the first year of operation are on average $13 per million Btu, how much would you expect to spend per year for heating? c. An energy efficiency contractor comes to you and proposes a solution that will give your building EPA Energy Star status, thereby reducing your energy consumption by 30%. The upgrade costs $125,000 on top of what you would spend for a basic heating system. The building owner will purchase the upgrade, providing it pays for itself within 5 years, simple payback. Assuming that the annual energy consumption for both baseline and Energy Star cases remains fixed from year to year and the cost of energy increases by 2% per year for the foreseeable future, is the upgrade financially viable?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Finance Economics And Policy For Nurses

Authors: Betty Rambur

2nd Edition

0826152538, 978-0826152534

More Books

Students also viewed these Finance questions

Question

5. Have you stressed the topics relevance to your audience?

Answered: 1 week ago