{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Midterm(Case5)

# Midterm(Case5) - Joseph Murphy Case Study 5 1 i = 8 i...

This preview shows pages 1–3. Sign up to view the full content.

Joseph Murphy Case Study 5 1 i = 8% i monthly = 0.75% [(\$115.83 - \$76.12) + \$50]*(A/P,0.75%,n) = 2.1( \$0.76 + \$0.62) \$89.71(A/P,0.75%,n) = 2.90 (A/P,0.75%,n) = 0.03233 0.75% @ 30 months = 0.03735 0.75% @ 36 months = 0.03180 30 0.03735 n 0.03233 36 0.03180 (n - 30)/(36-30)*(0.03180-0.03735) = (0.03233 - 0.03735) n = 35.43 n = 35 months = 2.9 years 2 Payback period is more sensitive to the life of the toilet because 8% interest only add 0.3 years to the payback time. 3 i = 6% i monthly = 0.50% monthly cost = \$76.12(A/P,0.5%,60) monthly cost = \$76.12*(0.01933) monthly cost = \$1.47 CCF/month = 2.1 2 CCF/month = 4.2 cost/CCF = \$1.47/4.2 cost/CCF = \$0.35 @ 6% \$0.35/CCF = \$0.47/1000 gallons @ 0% \$0.302/CCF = \$0.40/1000 gallons

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
4 City costs \$1.10/1000 gallons 100% rebate c = \$115.83/(2.1+2.1)(12)(5) \$0.46 a) \$0.46/CCF or \$0.61/1000 gallons This shows the success is not sensitive to the rebate program i = 4% i = 10% i monthly = 0.33% i monthly = 0.83% monthly cost = \$1.40 monthly cost = \$1.62 cost/CCF = \$0.33 cost/CCF = \$0.38 cost/1000 gal \$0.44 cost/1000 gal \$0.51 i = 5% i = 11% i monthly = 0.42% i monthly = 0.92% monthly cost = \$1.44 monthly cost = \$1.66 cost/CCF = \$0.34 cost/CCF = \$0.39 cost/1000 gal \$0.46 cost/1000 gal \$0.52 i = 6% i = 12% i monthly = 0.50% i monthly = 1.00% monthly cost = \$1.47 monthly cost = \$1.69 cost/CCF = \$0.35 cost/CCF = \$0.40 cost/1000 gal \$0.47 cost/1000 gal \$0.54 i = 7% i = 13% i monthly = 0.58% i monthly = 1.08% monthly cost = \$1.51 monthly cost = \$1.73 cost/CCF = \$0.36 cost/CCF = \$0.41 cost/1000 gal \$0.48
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 8

Midterm(Case5) - Joseph Murphy Case Study 5 1 i = 8 i...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online