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Unformatted text preview: salvage value 10% of initial cost, maintenance costs is estimated at $3500 every three year and savings in utility bills are estimated at $5,000 per year. The fiberglass may be installed for $30,000 and has salvage value 10% of initial cost. There will be maintenance cost of $5500 and savings in energy costs are expected to be only $4500. The foam is expected to last 10 years, whereas the fiberglass will have to be replaced in 8 years. 25,000 $ 30,000 $ Alternative A Alternative B I = $ 25k S = $ 2500 O & M = $ 3500 savings= $ 5000 I = $ 30K S = 3000 O & M = 5500 savings =4500 E355-Spring08-Test1-Sol Page 1 of 1 3/3/2008...
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- Fall '08