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16
ECONOMIC EVALUATION METHODS AND TOOLS
ANSWERS TO TEXTBOOK QUESTIONS AND EXERCISES
1. (a) M = $ 247.21
3. $4,764.49
7. 6.4 years
13.
14.
10000
11000
12000
13000
14000
15000
16000
17000
0 2 4 6 8 10
Value of a $10,000 investment over 10 years at
5% annual interest rate
Monthly compounding
Annual compounding
0
2000
4000
6000
8000
10000
12000
0 5 10 15
Cost
Years
Total owning and operating costs for systems of
Example 16.11
Standard electric water
heater
Solar thermal water
heater
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