Midterm(Case5)

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

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

View Full Document Right Arrow Icon
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
Background image of page 1

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

View Full DocumentRight Arrow Icon
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
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

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 Right Arrow Icon
Ask a homework question - tutors are online