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You are weighing the economic feasibility of installing a geothermal system versus a solar system to supply heat for your building. The following life cycle

You are weighing the economic feasibility of installing a geothermal system versus a solar system to supply heat for your building. The following life cycle costs are reported. The study period is 25 years, and the discount rate is 7.5%. The total present value of annual energy savings for geothermal heating is $2,000,000, and $1,500,000 for solar heating. Which heating system is the most cost-effective? Analyze the the Savings-to-Investment Ratio (SIR).
Geothermal Heating:
Building Size 25000 sf
Initial Cost $10/sf
Annual Operating Cost $2/sf
Solar Heating:
Building Size 25000 sf
Initial Cost $5
Annual Operating Costs $2

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