Leed credits for new construction

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Reference no: EM133980865

Question

A company has purchased a sophisticated HVAC control system in order to earn LEED credits for new construction. It has the option of entering into a service agreement to maintain the system for a fixed annual cost of $12,500 for five years, or it may purchase the service agreement for a single immediate payment of $55,000. Assuming a discount rate of 6.7%, what option would you recommend to the company?

Reference no: EM133980865

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