Economical solar energy and energy from fusion have been identified as two of engineering's grand challenges. While work continues on these grand challenges, conservation of energy from non-renewable sources is vital. On a practical level, installing low thermal emissivity windows (low-e windows) on buildings can contribute to energy conservation. Installing low-e windows on a small office building is estimated to cost $9,000. The windows are expected to last 8 years and have no salvage value at that time. The energy savings from the windows are expected to be $2,775 in the 1st year. After the 1st year, the savings are expected to increase by $125 each year due to escalating fossil fuel costs. MARR is 12% per year and annual worth is the preferred measure of economic worth.
Are the low-e windows an economically attractive investment?
The annual worth of installing the low-e windows is $___
Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +1.
The low-e window investment _attractive.

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anthougo anthougo · Answer 1 · 2021-04-05T21:32:45+02:00

Answer:

Economical Solar and Fusion Energy

The annual worth of installing the low-e windows is $_1,327________

Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +1.

The low-e window investment ___is____attractive.

Explanation:

a) Data and Calculations:

Present values:

Year Annual PV Factor PV of

Savings Savings

Year 1 $2,775 0.893 $2,478.075

Year 2 $2,900 0.797 2,311.300

Year 3 $3,025 0.712 2,153.800

Year 4 $3,150 0.636 2,003.400

Year 5 $3,275 0.567 1,856.925

Year 6 $3,400 0.507 1,723.800

Year 7 $3,525 0.452 1,593.300

Year 8 $3,650 0.404 1,474.600

Total $25,700 4.968 $15,595

Annual Worth of the Present Value of savings = $15,595/4.968 = $3,139

Annual worth of the Present Value of investment costs = $9,000/4.968

= $1,812

Annual worth = $1,327 ($3,139 - $1,812)