It is well established that indoor air quality (IAQ) has a significant effect on general health and productivity of employees at a workplace. A study showed that enhancing IAQ by increasing the building ventilation from 5 cfm (cubic feet per minute) to 20 cfm increased the productivity by 0.25 percent, valued at $90 per person per year, and decreased the respiratory illnesses by 10 percent for an average annual savings of $39 per person while increasing the annual energy consumption by $6 and the equipment cost by about $4 per person per year (ASHRAE Journal, December 1998). For a workplace with 120 employees, determine the net monetary benefit of installing an enhanced IAQ system to the employer per year.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
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It is well established that indoor air quality (IAQ) has a significant effect on general health and productivity of employees at a workplace. A study showed that enhancing IAQ by increasing the building ventilation from 5 cfm (cubic feet per minute) to 20 cfm increased the productivity by 0.25 percent, valued at $90 per person per year, and decreased the respiratory illnesses by 10 percent for an average annual savings of $39 per person while increasing the annual energy consumption by $6 and the equipment cost by about $4 per person per year (ASHRAE Journal, December 1998). For a workplace with 120 employees, determine the net monetary benefit of installing an enhanced IAQ system to the employer per year.

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