A small heat pump now costs $2,500 to purchase and install. It has a projected useful life of 12 years and will incur annual maintenance costs of $125 per year in real (year-zero) dollars over the useful life. These costs are projected to increase at 5% per year, which is the expected general inflation rate. The annual cost of electricity for the heat pump is $650 in year-ze dollars. Electricity prices are projected to increase at an annual rate of 8%. The firm's MARR, which includes an allowance for general price inflation, is 12% per year (im). No market value is expected from the heat pump at the end of the 12 years service life. a. What is the PW of owning and operating the heat pump? The PW is $. (Round to the nearest dollar.) b. (i) What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is $. (Round to the nearest dollar.)

A small heat pump now costs $2,400 to purchase and install. It has a projected useful life of 18 years and will incur annual maintenance costs of $100 per year in real (year-zero) dollars over the useful life. These costs are projected to increase at 6% per year, which is the expected general inflation rate. The annual cost of electricity for the heat pump is $700 in year-zero dollars. Electricity prices are projected to increase at an annual rate of 8%. The firm's MARR, which includes an allowance for general price inflation, is 15% per year (im). No market value is expected from the heat pump at the end of the 18 years of service life. Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. a. What is the PW of owning and operating the heat pump? The PW is $: (Round to the nearest dollar.) b. (i) What is the AW, expressed in actual dollars, of owning and operating the heat pump? The AW is $ (Round to the nearest dollar.) (ii) What is the…

You are saving to buy a car which in 2022 costs $30,000. You intend to make 36 equal consecutive payments to an account starting one month from now. The interest rate is .5% per month, compounded monthly. If the inflation rate is 4% per year compounded annually, how much in actual dollars should the periodic payments be.

Today you borrowed $90,000 from a bank at an interest rate of 10.25%, compounded monthly. You are supposed to repay the loan and its interest charges in equal monthly payments over a 15-year period, with the first payment in a month from now. The estimated annual inflation rate is 6%, compounded monthly.(a) What is the amount of your monthly payments?(b) What is the bank's real effective annual rate of return on this deal after taking inflation into account?