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?Gas HeatingOption:The initial equipment and installment of the natural gas system would cost $240,000 right now. The maintenance costs of the equipment are expected to be $3,000 per year, starting next year, for each of the next 15years.The energy cost is expected to be $7,000 starting next year and is expected to rise by 3% per year for each of the next 15 years due to the price of natural gas increasing.Geothermal HeatingOption Because of green energy incentives provided by the government, the geothermal equipment and installation are expected to cost only $215,000 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 15 years.

i=3%
1	1.0300	0.9709		1.0000	0.9709	1.0000	1.0300		0.0000	0.0000
2	1.0609	0.9426		2.0300	1.9135	0.4926	0.5226		0.9426	0.4926
3	1.0927	0.9151		3.0909	2.8286	0.3235	0.3535		2.7729	0.9803
4	1.1255	0.8885		4.1836	3.7171	0.2390	0.2690		5.4383	1.4631
5	1.1593	0.8626		5.3091	4.5797	0.1884	0.2184		8.8888	1.9409
6	1.1941	0.8375		6.4684	5.4172	0.1546	0.1846		13.0762	2.4138
7	1.2299	0.8131		7.6625	6.2303	0.1305	0.1605		17.9547	2.8819
8	1.2668	0.7894		8.8923	7.0197	0.1125	0.1425		23.4806	3.3450
9	1.3048	0.7664		10.1591	7.7861	0.0984	0.1284		29.6119	3.8032
10	1.3439	0.7441		11.4639	8.5302	0.0872	0.1172		36.3088	4.2565
11	1.3842	0.7224		12.8078	9.2526	0.0781	0.1081		43.5330	4.7049
12	1.4258	0.7014		14.1920	9.9540	0.0705	0.1005		51.2482	5.1485
13	1.4685	0.6810		15.6178	10.6350	0.0640	0.0940		59.4196	5.5872
14	1.5126	0.6611		17.0863	11.2961	0.0585	0.0885		68.0141	6.0210
15	1.5580	0.6419		18.5989	11.9379	0.0538	0.0838		77.0002	6.4500
16	1.6047	0.6232		20.1569	12.5611	0.0496	0.0796		86.3477	6.8742
17	1.6528	0.6050		21.7616	13.1661	0.0460	0.0760		96.0280	7.2936
18	1.7024	0.5874		23.4144	13.7535	0.0427	0.0727		106.0137	7.7081
19	1.7535	0.5703		25.1169	14.3238	0.0398	0.0698		116.2788	8.1179
20	1.8061	0.5537		26.8704	14.8775	0.0372	0.0672		126.7987	8.5229

I=5%

0.0000

0.0000

2

1.1025

0.9070

2.0500

1.8594

0.4878

0.5378

0.9070

0.4878

3

1.1576

0.8638

3.1525

2.7232

0.3172

0.3672

2.6347

0.9675

4

1.2155

0.8227

4.3101

3.5460

0.2320

0.2820

5.1028

1.4391

5

1.2763

0.7835

5.5256

4.3295

0.1810

0.2310

8.2369

1.9025

6

1.3401

0.7462

6.8019

5.0757

0.1470

0.1970

11.9680

2.3579

7

1.4071

0.7107

8.1420

5.7864

0.1228

0.1728

16.2321

2.8052

8

1.4775

0.6768

9.5491

6.4632

0.1047

0.1547

20.9700

3.2445

9

1.5513

0.6446

11.0266

7.1078

0.0907

0.1407

26.1268

3.6758

10

1.6289

0.6139

12.5779

7.7217

0.0795

0.1295

31.6520

4.0991

11

1.7103

0.5847

14.2068

8.3064

0.0704

0.1204

37.4988

4.5144

12

1.7959

0.5568

15.9171

8.8633

0.0628

0.1128

43.6241

4.9219

13

1.8856

0.5303

17.7130

9.3936

0.0565

0.1065

49.9879

5.3215

14

1.9799

0.5051

19.5986

9.8986

0.0510

0.1010

56.5538

5.7133

15

2.0789

0.4810

21.5786

10.3797

0.0463

0.0963

63.2880

6.0973

16

2.1829

0.4581

23.6575

10.8378

0.0423

0.0923

70.1597

6.4736

17

2.2920

0.4363

25.8404

11.2741

0.0387

0.0887

77.1405

6.8423

18

2.4066

0.4155

28.1324

11.6896

0.0355

0.0855

84.2043

7.2034

19

2.5270

0.3957

30.5390

12.0853

0.0327

0.0827

91.3275

7.5569

20

2.6533

0.3769

33.0660

12.4622

0.0302

0.0802

98.4884

7.9030

The PW of the Gas Heating Option is $...?

The PW of the Geothermal Heating Option is $...?