A piece of equipment costs $250,000 to buy and install. The annual operating cost for the equipment is $50,000 per year. The equipment will last 15 years. After 15 years, the equipment will have no net salvage value. The annual interest rate is 10%. What is the present value of the life-cycle cost to own and operate the equipment? Use end-of-year annual cash flow analysis.
Insulation has a thermal conductivity of 0.04 Watt/(m-°C). What is the R-value for this insulation when it is 5- cm thick?
An energy-saving project saves $30,000 per year. The project life is 10 years and the company minimum annual rate of return (MARR) is 15%. How much can the project cost and still be cost effective?
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