Economics

Mr . Steve CookDirector , Energy Center1800 HawthorneP .O . Box 68660University of Texas at El PasoEl Paso , TX 79968Re : Discounts for the environmentally strong furnaceAnalysis of the displaces for the home heating furnaces has been accomplished . Data which was taken into devotion included the annual force out consumption of the two furnaces , the per cubic foot woo of natural gas , the purchase booze of the two furnaces with and without the neglect and the all overriding cost of money in the market . The net give in value of the two options was evaluated to tickle which furnace would have a bring down cost of operation over a fifteen form lifespan . This evaluation would fill in evaluating if the size of the discount offered for the more efficient furnace is free to sway people to steal 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 be 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 succeed page From the table , we read that with the discounts , the operating cost for the 90 efficient furnace is cheaper by slightly 350 after 15 old age . What is interesting to see is that even so without offering...If you want to lose a full essay, order it on our website: Orderessay

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