Question: The system in an energy conservation option has a first cost of $25,000. It requires $2,000 per year maintenance and saves $5,000 per year in
The system in an energy conservation option has a first cost of $25,000. It requires $2,000 per year maintenance and saves $5,000 per year in utilities. This option will last 15 years with no salvage value. What is the 15-year life cycle cost assuming energy cost escalation of 4% annually, maintenance cost escalation 2% annually, and a 5% discount rate? What if the discount rate is 15%
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