5. Mary needs a new roof for her home. She is comparing the cost of a...
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5. Mary needs a new roof for her home. She is comparing the cost of a solar roof vs. traditional shingles. Currently she is paying $1800/yr for energy and does not foresee price increases. She plans to live in her home indefinitely. Based on the costs below at an interest rate of 10%, which roof do you recommend? Justify your answer. 1st Cost www Annual Energy Savings Useful Life Shady Solar Panels $10,000 30% (1+0.016) 8 years Hot-Stuff Solar Panels $20,000 80%(1+0.026) 15 years Old Timer's Shingles $25,000 25 years 5. Mary needs a new roof for her home. She is comparing the cost of a solar roof vs. traditional shingles. Currently she is paying $1800/yr for energy and does not foresee price increases. She plans to live in her home indefinitely. Based on the costs below at an interest rate of 10%, which roof do you recommend? Justify your answer. 1st Cost www Annual Energy Savings Useful Life Shady Solar Panels $10,000 30% (1+0.016) 8 years Hot-Stuff Solar Panels $20,000 80%(1+0.026) 15 years Old Timer's Shingles $25,000 25 years
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Answer rating: 100% (QA)
ANSWER To determine which roof is the most costeffective we need to calculate the present value of the costs and benefits of each option over the expe... View the full answer
Related Book For
A Survey of Mathematics with Applications
ISBN: 978-0134112107
10th edition
Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde
Posted Date:
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