Engineering Economics test #2

A HVAC unit will need repair done at year 10 of its 20 year lifespan. What economics equation would you use to determine present value?

• P/(F,i,n)

• P/(A,i,n)

• P/(G,i,n)

• P(A,j,i,n)

A HVAC unit will have average energy usage of 5000/year. What economics equation would you use to determine present value?

• P/(F,i,n)

• P/(A,i,n)

• P/(G,i,n)

• P(A,j,i,n)

The state implemented a new energy efficiency program that charges a fee for any non-energy efficiency HVAC system. It is an initial fee is $1000 and increase $200/year following that the unit is not replaced. What economics equation would you use to determine present value?

• P/(F,i,n)

• P/(A,i,n)

• P/(G,i,n)

• P(A,j,i,n)

The HVAC unit requires 10 hours at the shop rate of $60/hr and $50 every year, and the degradation of the unit causes a 2% increase of maintenance each year. What economics equation would you use to determine present value?

• P/(F,i,n)

• P/(A,i,n)

• P/(G,i,n)

• P(A,j,i,n)

Calculate the total present value for the HVAC unit:

discount rate is 1.0%

Initial Cost is $50,000

A HVAC unit will need $4000 repair done at year 10 of its 20 year lifespan.

A HVAC unit will have average energy usage of $5000/year.

The state implemented a new energy efficiency program that charges a fee for any non-energy efficiency HVAC system. It is an initial fee is $1000 and increase $200/year following that the unit is not replaced.

The HVAC unit requires 10 hours at the shop rate of $60/hr and $50 every year, and the degradation of the unit causes a 2% increase of maintenance each year.

What is you solution?

Your coworker did the calculations for a new energy efficient HVAC, and it was $ 80,000. Should you install the new unit?

• Yes, because the present value of the old unit is more

• Yes, because other factors

• No.