Question: A new homeowner, Ms. Dee Young, needs to decide whether to install R-11 or R-19 insulation in the attic of her new home. The insulated

A new homeowner, Ms. Dee Young, needs to decide whether to install R-11 or R-19 insulation in the attic of her new home. The insulated area is 1,500 square feet. The upgrade from R-11 to R-19 insulation costs $0.05 per square foot. The upgraded insulation is expected to save Ms. Dee Young approximately 380 kilowatt hours of energy usage per year. The planning horizon is 21 years and electricity costs $0.10/kWh. MARR is 10% per year.

A.) Based on a future worth analysis, is the upgrade to R-19 insulation economically justified?

The future worth of R-19 insulation is $___?

Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places. The tolerance is 0.15.

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