Determine which insulation you will choose

Reference no: EM131933232

Question: The annual heat loss from the roof of a house is $520. You want to add some insulation on the roof to reduce your heating bill. Insulation A will cost $300 to install and is estimated to save 60% of the heat loss through the roof. Insulation B will cost $250 to install and is estimated to save 55% of the heat loss through the roof. Determine which insulation you will choose if you plan to live in the house for 10 years. Use an interest rate of 8%.

Reference no: EM131933232

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