ass04_due092308_1

ass04_due092308_1 - ISE460 Fall 2008 Due 09/23/08 No.1 (1...

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ISE460 Fall 2008 Session 07 09/16/08 Assignment 04 Due 09/23/08 No.1 (1 1/2 points) Sharon Tahani, who owns a travel agency, bought an old house to use as her business office. She found that the ceiling was poorly insulated and that the heat loss could be cut significantly if 6 inches of foam insulation were installed. She estimated that with the insulation she could cut the heating bill by $60 per month and the air conditioning cost by $35 per month. The summer season is 4 months (June, July, August, September) of the year and that the winter season is another 3 months (December, January, and February) of the year. How much can she spend on insulation if she expects to keep the property for 6 years? Neither heating nor air conditioning would be required during the fall and spring. If she decides to install the insulation, it will be done at the beginning of May. Sharon's interest rate is 7%, compounded monthly. No.2 (1 points)
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ass04_due092308_1 - ISE460 Fall 2008 Due 09/23/08 No.1 (1...

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