Answer:
payback period is 9.4785 ≅ 9.5 years
Explanation:
BTU stands for British thermal units and MCF stands for the volume of 1,000 cubic feet.
We know that one thousand cubic feet (Mcf) of natural gas equals 1.037 million Btu.
Difference between heat loss before and after installation = (42-28) millions BTU = 14 millions BTU
14 million BTU is equivalent to --
1.037 million BTU = 1 MCF
1 million BTU = (1/1.037) MCF
14 million BTU = (1/1.037) x 14 MCF = 13.5004 MCF
Cost of 13.5004 MCF = = $8.94 x 13.5004 = $120.6935
Pay back period = (1144/120.6935) = 9.4785
Therefore, her payback period is 9.4785 ≅ 9.5 years
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