lec15 - MIT OpenCourseWare http:/ocw.mit.edu 1.020 Ecology...

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MIT OpenCourseWare http://ocw.mit.edu 1 .020 Ecology II: Engineering for Sustainability Spring 2008 For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms .
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1.020 Ecology II: Engineering for Sustainability Lectures 08_15 Outline: Discounting, Building Energy Revisited Motivation/Objective Determine the economic benefits of installing more energy efficient windows in the small house analyzed in Problem Set 3. Approach 1. Use the model of Problem Set 3 to determine the heating fuel consumed with and without improved (higher R value) windows. 2. Add present value and amortization to house energy MATLAB code 3. Compare present value of energy costs saved with improved windows vs. cost of purchasing and installing the windows. 4. Alternatively, compare amortized monthly payment on loan to purchase windows with monthly savings in heating bill Concepts and Definitions Needed: Temporal allocation of benefits and costs Net present value: convert all benefits and costs to a single value at beginning of time period. Amortization: Convert present benefits/costs to equal periodic (e.g. annual) payments
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lec15 - MIT OpenCourseWare http:/ocw.mit.edu 1.020 Ecology...

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