A company is considering two types of water heaters. The associated costs are shown below. The calculated annual cost of operation for oil heaters equals the 365 x 41045/EF x Fuel Cost per Btu. The calculated annual cost of operation for electric heaters equals 365 x 12.03/EF x Electricity Cost per kWh. Discuss how much money could be saved each year if the company used an oil heater?
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Alternative
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Electricity
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Oil
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Price of water heater
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$39,000
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$36,000
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|
EF
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2.05
|
1.7
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|
Fuel cost
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$0.095/kWh
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$0.0000064/Btu
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|
Annual maintenance costs
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$1000
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$500
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