Question: Question 23 (10 points) 10 Listen A ground water heating system can be purchased and installed for $2 Million and is believed to be operational

 Question 23 (10 points) 10 Listen A ground water heating system

can be purchased and installed for $2 Million and is believed to

Question 23 (10 points) 10 Listen A ground water heating system can be purchased and installed for $2 Million and is believed to be operational for 30 years with no salvage value. It will cost $30,000 pe year to maintain but it will save $200,000 in the first year based upon heating costs for that year. The company's cost of capital (MARR) is 10%. a) What is annual equivalent worth of this system if the $200,000 savings continues constant for the 30 years. b) What is the annual equivalent worth of this system if the $200,000 energy savin ncreases by 3% per year for the 30 years. Format V BI U

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