Your client is considering purchase of a new solar energy heater and cooler (SEHAC) for use in a large building and asks you to determine whether it is worth the extra cost if your client's i= 15 percent. The following cost information is provided: cost new of SEHAC = $150,000
expected life of installation = 25 yr savings in energy costs the first year = $18,000 at EOY 1 Expected increase in energy costs (and savings) over the 25-year life of the installation is 8 percent per year. (a) By PW, find which system is more economical. (b) Find the PW of the savings.