ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 16, Problem 33P
To determine

The first year in which project is justified.

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An electric utility company is going to perform energy audits on homes that are at least 30 years old. The utility estimates that homeowners can save $5 per square foot annually as the result of weatherization, attic insulation, new ductwork, and high efficiency heat pumps. Fifteen years is the expected life of this weatherization incentive, and the annual interest rate is 8%. How much is justified to spend now on this project for a 1,500-square-foot home?
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