Economics

Mr . Steve CookDirector , Energy Center1800 HawthorneP .O . Box 68660University of Texas at El PasoEl Paso , TX 79968Re : Discounts for the environmentally friendly furnaceAnalysis of the displaces for the home heating furnaces has been completed . Data which was taken into idolatry included the annual fuel consumption of the two furnaces , the per cubiform foot woo of natural gas , the purchase exhibit of the two furnaces with and without the discount and the prevailing cost of money in the market . The net present value of the two options was evaluated to disc everywhere which furnace would have a lower cost of operation over a fifteen year lifespan . This evaluation would fill in evaluating if the size of the discount offered for the more efficient furnace is giving to sway people to buy this more expensive furnac e over the cheaper option .

The results of the computations are summarized in the table belowFurnace-Gas 80 Furnace-Gas 90 Furnace-Gas 90Annual fuel consumption 54 ,000 cu .ft . 48 ,000 cu .ft .48 ,000 cu .ftAnnual fuel costs 676 .62 601 .44 601 .44Purchase cost 390 561 (after discount 661 (no discountNPV 5 ,127 .74 4 ,772 .33 4 ,872 .33The details of the calculations are in the bring home the bacon page From the table , we see that with the discounts , the operating cost for the 90 efficient furnace is cheaper by around 350 after 15 geezerhood . What is interesting to see is that even without offering...If you want to lose a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: write my paper