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Case Info (Education Institution so tax and depreciation aren't considered (?

Case Info (Education Institution so tax and depreciation aren't considered (?)

Current Year 1992 - outlay begins 1994

Preliminary cost = 386 windows plus installation = 321,350 (Installation labor = 142,800) ****prices are estimates for mid 1992 installation (but won't begin installation until 1994)

Anticipated life = 30 years and then replacement would be necessary (current windows last indefinitely if properly mainted)

Air cooling savings = 3978 per year in 1992 prices

Existing windows need to be repaired every 6 years scheduled for 1994 (if new ones not installed) expected costs (at 1992 price levels) = 35000

Savings from maintenance expected 15000 every 6 years in years 2000 and 2006 until new windows due for replacement in 2024 - savings expected to rise in current dollar terms at general economy wide rate of inflation,

See attachment for further details which raises my main question of what data to use the ones stated, actual, 1992 or 1994 treasury bonds for risk free rates and their expected inflation, or inflation calculated from cpi, oil prices, prices changed for inflation?, a lot of additional questions.... Probably need a scenario and/or sensitivity analysis, as well as cash flow statement and to accept the new window project.

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