Answer Happy

You are designing a new home and have to decide between two insulated roofing systems. One made of steel and the other plastic. The steel one will last longer, but costs more up front. Based on the information the manufacturers have provided you come up with the following estimates. Service Life First Cost Heat savings Maintenance costs Salvage Value (After service life) Disposal Cost (After service life) Steel System 21 years $ 22,500 $ 3,100 / year $ 80 / year $2,200 $1,000 Plastic System 14 Years $ 15,030 $ 2,500 / year $ 120 / year Nil $1,000 If the interest rate is 10% which system should you purchase?