- A Small Heat Pump Now Costs 2 800 To Purchase And Install It Has A Projected Useful We Of 15 Years And Will Incur Annu 1 (27.82 KiB) Viewed 77 times
A small heat pump now costs $2,800 to purchase and install. It has a projected useful We of 15 years and will incur annual maintenance costs of $100 per year in real (year-zero) dollars over the useful life. These costs are projected to increase at 6% per year, which is the expected general inflation rate. The annual cost of electricity for the heat pump is $720 in year-zero dollars. Electricity prices are projected to increase at an annual rate of 8%. The firm's MARR, which includes an allowance for general price inflation, is 12% per year (1.). No market value is expected from the heat pump at the end of the 15 years of service life. Click the icon to view the interest and annuity table for discreto compounding when i = 12% per year. a. What is the PW of owning and operating the heat pump? The PW is $. (Round to the nearest dollar) b. What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is s (Round to the nearest dollar) (1) What is the AW in real dollars of owning and operating the heat pump? The AW in $(Round to the nearest dollar)