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

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%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!