Determine what is the cost of heat without the installation

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Reference no: EM13268178

The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost the owner $3,000 next year. A salesman from Superfiber Insulation, Inc., has told you, the plant engineer, that he can reduce the heat loss by 80% with the installation of $18,000 worth of Superfiber now. If the cost of heat rises by $200 per year (uniform gradient) after the next year and the owner plans to keep the present building for 15 more years, if the interest is 10% per year, what is the cost of heat without the installation?

Reference no: EM13268178

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