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Your company is environmentally conscious and is considering two heating options for a new research building. What you know about each option is below, and your company will use an annual interest rate (MARR) of 9% for this decision. Which is the lower cost option for the company? iClick the icon to view the additional information about the options. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. The PW of the Gas Heating Option is $. (Round to the nearest dollar.) C

More Info Gas Heating Option: The initial equipment and installment of the natural gas system would cost $240,000 right now. The maintenance costs of the equipment are expected to be $2,000 per year, starting next year, for each of the next 17 years. The energy cost is expected to be $7,000 starting next year and is expected to rise by 5% per year for each of the next 17 years due to the price of natural gas increasing. Geothermal Heating Option: Because of green energy incentives provided by the government, the geothermal equipment and installation are expected to cost only $200,000 right now, which is cheaper than the gas lines. There would be no energy cost with geothermal, but because this is a relatively newer technology the maintenance is expected to be $13,000 per year, staring next year, for each of the next 17 years. Print Done

N 1 2 3 6 7 9 10 11 12 13 14 15 16 17 18 19 20 Single Payment Compound Present Amount Factor Worth Factor To Find F Given P F/P 1.0500 1.1025 1.1576 1.2155 1.2763 1.3401 1.4071 1.4775 1.5513 1.6289 1.7103 1.7959 1.8856 1.9799 2.0789 To Find P Given F P/F 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4810 0.4581 2.1829 2.2920 2.4066 2.5270 0.3957 2.6533 0.3769 0.4363 0.4155 Discrete Compounding; i = 5% Uniform Series Compound Amount Factor To Find F Given A F/A 1.0000 2.0500 3.1525 4.3101 5.5256 6.8019 To Find P Given A To Find A Given F A/F P/A 0.9524 1.0000 1.0500 1.8594 0.4878 0.5378 2.7232 0.3172 0.3672 3.5460 0.2320 0.2820 4.3295 0.1810 5.0757 0.1470 8.1420 5.7864 0.1228 9.5491 6.4632 0.1047 11.0266 7.1078 0.0907 12.5779 7.7217 0.0795 14.2068 15.9171 Present Sinking Fund Factor 17.7130 19.5986 21.5786 23.6575 25.8404 28.1324 Worth Factor 8.3064 0.0704 8.8633 0.0628 9.3936 0.0565 9.8986 0.0510 10.3797 0.0463 Capital Recovery Factor To Find A Given P A/P 30.5390 12.0853 0.0327 33.0660 12.4622 0.0302 0.2310 0.1970 0.1728 0.1547 0.1407 0.1295 0.1204 0.1128 0.1065 0.1010 0.0963 10.8378 0.0423 11.2741 0.0387 11.6896 0.0355 0.0855 0.0827 0.0802 0.0923 0.0887 Uniform Gradient Gradient Gradient Present Uniform Worth Factor To Find P Given G P/G 0.0000 0.9070 2.6347 5.1028 8.2369 11.9680 16.2321 20.9700 26.1268 31.6520 49.9879 56.5538 63.2880 70.1597 77.1405 84.2043 Series Factor 3.6758 4.0991 37.4988 4.5144 43.6241 4.9219 91.3275 98.4884 To Find A Given G A/G 0.0000 0.4878 0.9675 1.4391 1.9025 2.3579 2.8052 3.2445 5.3215 5.7133 6.0973 6.4736 6.8423 7.2034 7.5569 7.9030

N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Single Payment Compound Present Amount Factor Worth Factor To Find F Given P F/P 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 2.5804 2.8127 3.0658 3.3417 3.6425 3.9703 4.3276 4.7171 5.1417 5.6044 To Find P Given F P/F 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4604 0.4224 0.3875 0.3555 0.3262 0.2992 0.2745 0.2519 0.2311 0.2120 0.1945 0.1784 Discrete Compounding; i=9% Uniform Series Compound Amount Factor To Find F Given A F/A 1.0000 2.0900 3.2781 4.5731 5.9847 7.5233 9.2004 11.0285 13.0210 15.1929 17.5603 20.1407 Present Sinking Worth Factor Fund Factor To Find P Given A P/A 0.9174 1.7591 2.5313 3.2397 3.8897 4.4859 5.0330 5.5348 5.9952 6.4177 To Find A Given F A/F 22.9534 26.0192 29.3609 33.0034 8.3126 36.9737 8.5436 41.3013 8.7556 0.1329 0.1087 0.0907 0.0768 0.0658 1.0000 0.4785 0.3051 0.2187 0.3087 0.1671 0.2571 0.2229 7.4869 0.0436 7.7862 0.0384 8.0607 0.0341 Capital Recovery Factor To Find A Given P A/P 6.8052 0.0669 0.1469 7.1607 0.0497 0.1397 0.1336 0.1284 0.1241 46.0185 8.9501 0.0217 51.1601 9.1285 0.0195 1.0900 0.5685 0.3961 0.1987 0.1807 0.1668 0.1558 0.0303 0.1203 0.0270 0.1170 0.0242 0.1142 0.1117 0.1095 Uniform Gradient Gradient Gradient Present Uniform Worth Series Factor Factor To Find P Given G P/G 0.0000 0.8417 2.3860 4.5113 7.1110 10.0924 13.3746 16.8877 20.5711 24.3728 28.2481 32.1590 36.0731 39.9633 43.8069 47.5849 51.2821 54.8860 58.3868 61.7770 To Find A Given G A/G 0.0000 0.4785 0.9426 1.3925 1.8282 2.2498 2.6574 3.0512 3.4312 3.7978 4.1510 4.4910 4.8182 5.1326 5.4346 5.7245 6.0024 6.2687 6.5236 6.7674