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LIFE CYCLE COST OF ALTERNATIVE TYPES OF NEW HEATING SYSTEMS Case Number 1 New Gas Furnace With an Add-On Air Conditioner 2 New High Efficiency Gas Furnace With Add-On Air Conditioner 3 Heat Pump with Auxiliary Gas Backup 4 Heat Pump with Auxiliary Electric Backup
Item
Life of Equipment Initial Cost of Equipment Annual Energy Cost Annual Maintenance Cost Heating Efficiency (AFUE) Discount Rate Salvage Value Life Cycle Cost Best Selection
LIFE CYCLE COST PRESENT WORTH Case Number: 1 1) Present Worth of a Future Amount
1 P = A n (1 + i )
(SPW: 15, 3%): 0.64186 2) Present Worth of a Uniform Series Compound Amount
(1 + i ) n 1 P = A n i (1 + i )
(UPW: 15, 3%): 11.9379 Where: P = Present worth A = Amount i = Interest Rate: 3% n = Number of Interest Periods: 15 SPW = Present Worth Factor UPW = Uniform Series Compound Amount Factor Equipment Cost Energy Cost: Maintenance Cost: Salvage Cost: $1,191 $60 $30 x x x 11.9379 11.9379 .64186 : : : : $10,733 $14,218 $716 $-19 $25,648
LIFE CYCLE COST PRESENT WORTH Case Number: 2 1) Present Worth of a Future Amount 1 P = A n (1 + i ) (SPW: 15, 3%): 0.64186 2) Present Worth of a Uniform Series Compound Amount
(1 + i ) n 1 P = A n i (1 + i )
(UPW: 15, 3%): 11.9379 Where: P = Present worth A = Amount i = Interest Rate: 3% n = Number of Interest Periods: 15 SPW = Present Worth Factor UPW = Uniform Series Compound Amount Factor Equipment Cost Energy Cost: Maintenance Cost: Salvage Cost: $928 $60 $30 x x x 11.9379 11.9379 .64186 : : : : $11,183 $11,078 $716 $-19 $22,958
LIFE CYCLE COST PRESENT WORTH Case Number: 3 1) Present Worth of a Future Amount 1 P = A n (1 + i ) (SPW: 15, 3%): 0.64186 2) Present Worth of a Uniform Series Compound Amount
(1 + i ) n 1 P = A n i (1 + i )
(UPW: 15, 3%): 11.9379 Where: P = Present worth A = Amount i = Interest Rate: 3% n = Number of Interest Periods: 15 SPW = Present Worth Factor UPW = Uniform Series Compound Amount Factor Equipment Cost Energy Cost: Maintenance Cost: Salvage Cost: $1,366 $150 $50 x x x 11.9379 11.9379 .64186 : : : : $10,153 $16,307 $1,791 $-32 $28,219
LIFE CYCLE COST PRESENT WORTH Case Number: 4 1) Present Worth of a Future Amount 1 P = A n (1 + i ) (SPW: 15, 3%): 0.64186 2) Present Worth of a Uniform Series Compound Amount
(1 + i ) n 1 P = A n i (1 + i )
(UPW: 15, 3%): 11.9379 Where: P = Present worth A = Amount i = Interest Rate: 3% n = Number of Interest Periods: 15 SPW = Present Worth Factor UPW = Uniform Series Compound Amount Factor Equipment Cost Energy Cost: Maintenance Cost: Salvage Cost: $1,468 $120 $50 x x x 11.9379 11.9379 .64186 : : : : $9,983 $17,525 $1,433 $-32 $28,909