A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed fiberglass insulation to protect against heat loss in the winter and heat gain in the summer will cost an estimated $80,000. The annual savings in energy due to the insulation will be $19,000 at EOY one in the 9-year life of the outlet, and these savings will increase by 15% each year thereafter. If the annual interest rate is 18%, is the cost of the proposed amount of insulation justified? Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 18% per year. The present equivalent of energy savings is $ (Round to the nearest dollar.)

Fig: 1