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Focus on the difference between feasible alternatives ​(Principle 2LOADING...​)! Insulated concrete forms​ (ICF) can be used as a substitute for conventional wood framing in building construction. Heating and cooling bills will be about 6060​% less than in a similar​ wood-framed building in upstate New York. An ICF home will be approximately 1010​% more expensive to construct than a​ wood-framed home. For a typical 1 comma 8001,800 ftsquared2 home costing ​$130130 ftsquared2 to construct in upstate New York and costing ​$260260 per month to heat and​ cool, how many months does it take for a 1 comma 8001,800 ftsquared2 ICF home to pay back its extra construction​ cost?

Respuesta :

Answer:

It will need 176 months (almost 15 years) to payback without considering the time value of money

Explanation:

cost of a typical construction:

1,800 square feet x $130 per square fet = $234,000

the ICF is 10% more expensive:

$34,000 x 1.10 = $257,400

additional cost: $27,400

then the heat cost is $260 and it will be 60% less :

$260 - 60% =$260 x( 1 - 0.6) = $104

savigns $260 - $104 = $156

we now divide the additional cost over the saving per month.

$27,400 / 156 saving per month = 175,641025 = 176 months