In an effort to be more environmentally conscious, a homeowner may upgrade a furnace that runs on fuel oil to a natural gas unit. The investment will be $2500 installed. The cost of the natural gas will average $60 per month over the year, instead of the $145 per month that the fuel oil costs. Assume energy costs increase 3% per year. If the interest rate is 9% per year, how long will it take to recover the initial investment?

Q: A homeowner is considering an upgrade of a fuel-oil-based furnace to a natural gas unit. The…

A: New machine install price = 2500 Cost of natural gas per month =  60*12  = 720 Fund cost = 9%…

Q: new furnace for your small factory is being installed right now, will cost $33,000, and will be…

A: Furnace should be installed if Net present value of setting up Furnace is positive Net present value…

Q: An energy-efficient motor may be purchased for $3,000 that will last for 5 years. It will save $800…

A: Present Worth: It is the notion of "present value" that asserts that a sum of money is worth more…

Q: A new furnace for your small factory is being installed right now, will cost $43,000, and will be…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: A computer call center is going to replace all of its incandescent lamps with more energy efficient…

A: Given information: Total estimated savings per year is $1,875 Initial investment is $4,900

Q: The expenses included in the fabrication of a wind turbine for a planned Wind Farm is $73,000…

A: Investment needed today (X) = $16000 First year cost saving (S1) = $73000 - $58000 = $15000 S2 to S5…

Q: A new furnace for your small factory is being installed right now, will cost $46,000, and will be…

A: Equivalent Annual Cost(EAC) is cost of an investment proposal that is spread over its useful life…

Q: A computer call center is going to replace all of its incandescent lamps with more energy- efficient…

A: a. Workings:

Q: Developers are going to install an airconditioning system in their building and, as a consequence,…

A: Estimated Uniform Annual Cost (EUAC) method shows the life cycle costs of a project by measuring an…

Q: A new furnace for your small factory will cost $43,000 and a year to install, will require ongoing…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Consider a machine which costs $115,000 now and which has a useful life of seven years. This machine…

A: The following the information in the question: 1. Machine which costs $115,000 2. Useful life of…

Q: A petroleum company, whose minimum attractive rate of return is 10%, needs to paint the vessels and…

A: Given case is: A petroleum company, whose minimum attractive rate of return is 10%, needs to paint…

Q: A 2,500 square foot house in New Jersey costs $1,700 each winter to heat with its existing​…

A: Payback period is considered as the period under which the cost of project is covered with the cash…

Q: A manufacturing firm spends $350,000 annually for a required safety inspection program. A new…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Bailey, Inc., is considering buying a new gang punch that would allow it to produce circuit boards…

A: The amount which is invested by an investor in any security is known as investment. It can be done…

Q: You are considering a luxury apartment building project that requires an investment of $15,000,000.…

A: Answer:-  Return on investment meaning:- The ratio of net income to investment is generally known as…

Q: Your company is environmentally conscious and is looking at two heating options for a new research…

A: PV computes the existing value of future benefits by discounting future cash flows with a given…

Q: Allen Bradley claims that its XM1Z1A and XM442 electronic over-speed detection relay modules provide…

A: The formula used as follows: Present worth=AP/A,i,nGP/G,i,nA=Annual paymentn=Number of yearsi=Annual…

Q: As part of the refining process, a certain heat exchanger must be replaced every year.  The…

A: We need to calculate present worth of heat exchanger Present worth =C11-P/F,i%,N*(F/P,f%,N)i-f Where…

Q: A new furnace for your small factory is being installed right now, will cost $46,000, and will be…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The heat loss through the exterior walls of a processing plant is expected to cost the owner $3000…

A: Rate of return is calculated in a case where NPV = 0 Rate of return is usually calculated on trail…

Q: You are considering a luxury apartment building project that requires an investment of $12,500,000.…

A: The calculation is:

Q: The manufacture of equipment costs $73,000 per year. An engineer finds that by spending $16,000 now…

A: Costs per year= 73000 Initial Cost = 16000 Updated costs per year: Year Cash Outflow 1 -58000…

Q: It costs $30,000 to retrofit the gasoline pumps at a certain filling station so the pumps can…

A: Time value of money (TVM) is a concept which states that the money today has more worth than the…

Q: Labco Scientific sells high-purity chemicals to universities, research laboratories, and…

A:

Q: a company must buy new safety equipment every 8 years, costing $16,000, with a salvage value of…

A:

Q: A new furnace for your small factory is being installed right now, will cost $39,000, and will be…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: A computer call center is going to replace all of its incandescent lamps with more energy-efficient…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost…

A: Annually $200 is the cost of heat loss   The present value of Gradient, (PG) = (A/G, i%, n) =200…

Q: A new furnace for your small factory will cost $47,000 and a year to install, will require ongoing…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: A new furnace for your small factory is being installed right now, will cost $46,000, and will be…

A: Note : As per our guidelines, we can only solve 3 subparts. Please post other subparts separately.

Q: For your new laboratory, you plan to purchase energy efficient freezers. There are two models in the…

A:

Q: Labco Scientific sells high-purity chemicals to universities, research laboratories, and…

A: Given: New equipment cost = $560,000 Year = 3 Interest rate = 6%

Q: worthwhile to invest in the insulation? What is the payback period of the investment?

A: Reduction in fuel = P190000 × 20% = P38000  Less: Annual cost of taxes and insurance = 5% of P120000…

Q: construction firm can achieve a $15,000 cost savings in Year 1, increasing by $3000 each year for…

A: Using present value and PMT function in Excel

Q: In this problem, we consider replacing an existing electrical water heater with an array of solar…

A: IRR is that rate of return which makes the worth of future cash flows equal to the existing worth.

Q: A new furnace for your small factory is being installed right now, will cost $36,000, and will be…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: If a garden center is considering the purchase of a new tractor with an initial investment cost of…

A: Payback period is indicator of how much period, the project takes to return the initial investment.

Q: A chemical engineer believes that by modifying the structure of a certain water treatment polymer,…

A: Given:Extra income by modification of plant is $6000 per year.Interest rate per year 10%Time period…

Q: For your new laboratory, you plan to purchase energy efficient freezers. There are two models in the…

A: Solution: Compute Present costs: Present cost of model X =…

Q: A new furnace for your small factory is being installed right now, will cost $44,000, and will be…

A: Initial cost = $44,000 Maintenance = $1,200 Discount rate = 10%

Q: Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure…

A: It is given that the original cost of manufacture is $85000 and by spending $19000 the cost will…

Q: A computer call center is going to replace all of its incandescent lamps with more energy-efficient…

A: Part (a)The cash flows and IRR calculations are shown on the white board. Please see the white…

Q: An industrial machine costing $14,000 will produce net cash savings of $5,000 per year. The machine…

A:

Q: A computer call center is going to replace all of its incandescent lamps with more energy efficient…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Consider a new electric forklift truck that would cost $18,000, have operating costs of $1,000 in…

A: Efficiency and profitability is depends upon the machine. Effective production provide high…