Question: no need for long solutiom just answer is enough and okay The Coleman family is planning to stay in their current house for another 5


The Coleman family is planning to stay in their current house for another 5 years until all of the children graduate from high school They will then sell their current house and downsize into a smaller one. The Colemans are planning install new windows, which they believe will allow their family to lower its energy bills significantly. Installing new windows throughout the house will cost $15.000 with payment due immediately. At the end of year 1, they estimate that the new windows will result in result in an energy savings of $500; these energy savings will increase by $50 each year. When the Colemans sell their house at the end of years, they estimate that the newer windows will increase the sales price of their home by $5,000. Choose a cash flow diagram A B 03 Q $5.700 Q $500 $550 $600 $650 $500 $550 $600 $650 59 + OD 0 1 2 3 5 End of Year 0 1 3 Q MU 1 $15.000 $15.000 D $15,000 $4 ( (+) $550 $500 $600 $650 0 End of Year 2 2V $550 3 $600 44 $650 $500 $5.700 $15.000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
