Home heating accounts for approximately one-third of energy consumption in a typ
ID: 3196194 • Letter: H
Question
Home heating accounts for approximately one-third of energy consumption in a typical U.S. household. Despite soaring prices of oil, coal, and natural gas, one can make his/her winter heating bill noninflationary by installing an ultraconvenient corn burning stove that costs in the neighborhood of $3 comma 200. That's right - a small radiantheating stove that burns corn and adds practically nothing to global warming or air pollution can be obtained through www.magnumfireplace.com. Its estimated annual savings per household in fuel is $400 in a regular U.S. farming community. Do the annual savings more than offset the cost of installing and maintaining a corn-burning stove?
What other factors besides dollars might influence your decision to use corn for your home heating requirements? Assume the problem setting is in Tennessee. Also assume that stove will be used for 10 years.
Work this problem without considering the time value of money. The total savings during the useful life of the stove are $ _. (Round to the nearest dollar.)
Are the total savings greater than the cost of installing and maintaining a corn-burning stove? Choose the correct answer . Yes or No
Explanation / Answer
It is very cheap to operate corn burning stove in an area where corn is grown. They are very efficient compared to other stoves. Corn is renewable and it burns without producing any visible smoke. So the renewability and eco friendly nature encourages us to use the stove.
As we can save $400 dollars per year on fuel if we use the corn burning stove, so for a period of 10 years we can save 400X10=$4000.
So the total savings is greater than the installation cost of $3200.
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