A convention center is considering the installation of occupancy sensors to reduce the cost of lighting and temperature control in rooms that may be frequently unoccupied. 2 different sensors are being evaluated. Sensor A has a fixed delay but can cause frequent on/off cycling of the lights, HVAC, and ventilation systems. Sensor B is a self-optimizing sensor that uses recent room utilization to optimize the delays resulting in higher savings and less frequent cycling of systems. There are 74 rooms in the convention center. Installation of Sensor A in each room will cost $70/room and result in annual savings of approximately 900 kWh/room. Installation of Sensor B in each room will cost $140/room and result in annual savings of approximately 1,050 kWh/room. The cost of electricity is $0.04/kWh. MARR is 12%/yr. Compare the future worth of each alternative (including do nothing) over a 10-year planning horizon using an investment portfolio approach, including residual capital in the investment pool. Click here to access the TVM Factor Table Calculator.
1. The future worth for "do nothing" is $
2. The future worth for sensor A is $
3. The future worth for sensor B is $
4. Carry all interim calculations to 5 decimal places and then round your final answers to whole numbers. The tolerance is ±5.
alternative is preferred.