Question: 0/1 pts Question 5 A mechanical engineer must recommend a new heating system to a commercial building owner. The owner intends to sell the building

0/1 pts Question 5 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 $13,000, a replacement cost of $5,000 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 $20,000, a replacement cost of $9,000 annual operating costs of $2,500, and increases the value of the building by $6,000, when it is sold at the end of year 15. Determine the PW of costs for the option the engineer should recommend at an interest rate of 6%. Express your answer in $ to the nearest $100 You Answered 6000 Correct Answer 46803.0 argin ror /- 500.0
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
