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You are thinking about buying a new heating system for your house. You have two options. Both units will provide the same level of service

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You are thinking about buying a new heating system for your house. You have two options. Both units will provide the same level of service but have different useful lives and costs. Select the best option using a MARR-20%. Use the repeatability assumption. A student has already performed calculations associated with SP240 heating system. Perform similar calculations for the other heating system and select the best option. SP240 HEPS9 Capital investment Annual expenses: Electrical energy $33,200 $47,600 $2,165 $1,100 in year 1, and increasing $500/yr thereafter $1,720 $500 in year 4, and increasing $100/yr thereafter Maintenance Useful life (years) Market value (end of useful life) 9 5,000 0 Model SP240 $5,000 2 3 4 5 Model HEPS9 2 3 A-$2,165 4 $1,100 $1,600 A-$1720 $2,100 $2,600 $3.100 S00 SH00 s900 $31,200 $1000 End of Year Ead of Year Heating system SP240 AW(20% )SP240-$33,200(A/P, 20%, 5) - $2,165 -($1,100+ $500(A/G, 20%, 5)] -$15,187, Heating system HEPS9 Au(20%%)HEPST7600A10, 20 You are thinking about buying a new heating system for your house. You have two options. Both units will provide the same level of service but have different useful lives and costs. Select the best option using a MARR-20%. Use the repeatability assumption. A student has already performed calculations associated with SP240 heating system. Perform similar calculations for the other heating system and select the best option. SP240 HEPS9 Capital investment Annual expenses: Electrical energy $33,200 $47,600 $2,165 $1,100 in year 1, and increasing $500/yr thereafter $1,720 $500 in year 4, and increasing $100/yr thereafter Maintenance Useful life (years) Market value (end of useful life) 9 5,000 0 Model SP240 $5,000 2 3 4 5 Model HEPS9 2 3 A-$2,165 4 $1,100 $1,600 A-$1720 $2,100 $2,600 $3.100 S00 SH00 s900 $31,200 $1000 End of Year Ead of Year Heating system SP240 AW(20% )SP240-$33,200(A/P, 20%, 5) - $2,165 -($1,100+ $500(A/G, 20%, 5)] -$15,187, Heating system HEPS9 Au(20%%)HEPST7600A10, 20

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