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Answer:
Economical Solar and Fusion Energy
The annual worth of installing the low-e windows is $_1,327________
Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +1.
The low-e window investment ___is____attractive.
Explanation:
a) Data and Calculations:
Present values:
Year Annual PV Factor PV of
Savings Savings
Year 1 $2,775 0.893 $2,478.075
Year 2 $2,900 0.797 2,311.300
Year 3 $3,025 0.712 2,153.800
Year 4 $3,150 0.636 2,003.400
Year 5 $3,275 0.567 1,856.925
Year 6 $3,400 0.507 1,723.800
Year 7 $3,525 0.452 1,593.300
Year 8 $3,650 0.404 1,474.600
Total $25,700 4.968 $15,595
Annual Worth of the Present Value of savings = $15,595/4.968 = $3,139
Annual worth of the Present Value of investment costs = $9,000/4.968
= $1,812
Annual worth = $1,327 ($3,139 - $1,812)
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