A mechanical engineer must recommend a new heating system to a commercial building owner. The owner intends to sell the building in 15 years. A gas fired furnace option has a design life of 5 years, an initial cost of $11,000, a replacement cost of $6,000 and annual operating costs of $3,500, but adds no value to the building when sold. A geothermal heat pump system has a design life of 10 years, an initial cost of $18,000, a replacement cost of $9,000, annual operating costs of $2,500, and increases the value of the building by $7,000, when it is sold at the end of year 15. Determine the equivalent uniform annual cost (EUAC) of costs for the option the engineer should recommend at an interest rate of 5.7%. Express your answer in $ to the nearest $10.
The two option with cost and benefitas below
Furnace |
Heat pump |
|
Initial cost |
10000 |
19000 |
Replacement cost |
6000 |
10000 |
Annual operating cost |
3500 |
2500 |
Salvage value |
0 |
5000 |
The installed cost and relacement cost of both option is givenbelow. If the initial cost is C and replacement cost for ever tyear isR and operating cost is O. Then EUAC is
The value of the house increases by 5000 at the end of 15 years.Then EUAB is
Therefore, EUAC for second option is
The recomendable option should be Heat pump.
A mechanical engineer must recommend a new heating system to a commercial building owner. The owner...
explain steps and notation. dont do on excel. i rate
5. An environmen tal engineer must recommend one of two methods for monitoring high colony counts of E.coli and other bacteria in watershed area "hot spots". What's the incremental of return (2 decimal places)? which method is more economically justified at 12% MARR. (20 pts, due 4/11, 11:59pm) rate Method B Method A 310,000 -100,000 Initial Cost, S Annual operating cost, S per year -55,000 in year 1, -50,000 in...
Accounting/Economics Help
A plant engineer is considering two types of solar water heating
system. The firm’s MARR is 12%. Which of the following statement is
true?
a. IRR_A > IRR_B, and A is better
b. NPV_B > NPV_A, and B is better
c. Payback Period_A > Payback Period_B , and B is better
d. ΔIRR_A-B > MARR, and A is better
Initial cost Annual savings Expected life (years) Salvage value Model A 615,000 158,000 5 65,000 Model B 300,000 92.000...
A building owner is planning a renovation to an existing building, at an MARR of 12%. As part of this renovation, they have two options: 1) Retain the current HVAC equipment, which has a current market value of $12,000. Its operating costs next year will be $3750, and these costs will increase by 35% each year. Its salvage value will decrease by 20% each year. 2) Obtain a new, more energy-efficient HVAC system at a cost of $18,000. It will...
A commercial building in New Orleans has the following electrical design: Lighting System (Demand Factor = 0.75): Indoor lighting = 2.75kW 120V single-phase; Outdoor lighting = 3.50kW 120V single-phase Heating System (Demand Factor = 0.70): Electric Furnace - 20,000 btuh 240V single-phase Convenience Power (Demand Factor = 0.45): 65 duplex outlets rated at 1.5A 120V single phase Include 15% spare circuits for future expansion The system has a diversity coefficient of 1.1 Using this information, calculate the gross connected load,...
A commercial building in New Orleans has the following electrical design: Lighting System (Demand Factor = 0.75): Indoor lighting = 2.75kW 120V single-phase; Outdoor lighting = 3.50kW 120V single-phase Heating System (Demand Factor = 0.70): Electric Furnace - 20,000 btuh 240V single-phase Convenience Power (Demand Factor = 0.45): 65 duplex outlets rated at 1.5A 120V single phase Include 15% spare circuits for future expansion The system has a diversity coefficient of 1.1 Using this information, calculate the gross connected load,...
How much would the owner of a building be justified in paying for a sprinkler system that will save $1000 a year in insurance premiums if the system has to be replaced every 15 years and has a salvage value equal to 10% of its initial cost? Assume money is worth 5%. Use excel.
2) A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $110,000. Due to improved efficiency, it will require less electric power than the current system each year over a six-year period. The market value of the system will be $20,000 at the end of six years. A kWh of electricity costs $0.10, and the company uses a MARR of 15% per year. What are the minimum electrical savings in...
Load Duration Curve A gas-fired boiler system is being design for a new building. The system will consist of 3 identical boilers, each with rated output = 200 kW. The anticipated LDC is shown below. 600 500 Heating Load 400 [kW] 300 200 100 0 The planned operating sequence is as follows: Boiler-1 fires first to meet whatever load it can, up to its capacity. When Boiler-1 reaches its capacity, Boiler-2 fires second and operates to meet whatever load it...
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 8% for this decision. Which is the lower cost option for the company? Click the icon to view the additional information about the options. 2 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year....
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 and annual
interest rate (MARR) of 6% for this decision. Which is the lower
cost option for the company?
I need the PW of both options
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...