Economics

Mr . Steve CookDirector , Energy Center1800 HawthorneP .O . Box 68660University of Texas at El PasoEl Paso , TX 79968Re : Discounts for the environmentally substantial furnaceAnalysis of the displaces for the home heating furnaces has been completed . Data which was taken into fear included the annual fuel consumption of the two furnaces , the per cubical foot woo of natural gas , the purchase acquaint 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 fall upon which furnace would have a lower cost of operation all everyplace a fifteen year lifespan . This evaluation would coif in evaluating if the size of the discount offered for the more efficient furnace is bounteous to sway people to buy this more expensive furnace 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 win 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: OrderEssay.net

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