Preferred measure of economic worth

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Reference no: EM133425919

Question: Economical solar energy and energy from fusion have been identified as two of engineering's grand challenges. While work continues on these grand challenges, conservation of energy from non-renewable sources is vital. On a practical level, installing low thermal emissivity windows (low-e windows) on buildings can contribute to energy conservation. Installing low-e windows on a small office building is estimated to cost $13800. The windows are expected to last 7 years and have no salvage value at that time. The energy savings from the windows are expected to be $2,525 in the 1st year. After the 1st year, the savings are expected to increase by $156 each year due to escalating fossil fuel costs. MARR is 15% per year and annual worth is the preferred measure of economic worth. The annual worth of installing the low-e windows is: Carry all interim calculations to 5 decimal places and then round your final answer to a whole number.

Reference no: EM133425919

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