Question

the shops have begun a campaign to replace all the butterfly control valves on the base water supply system with ball or globe valves (as appropriate). to justify a contract replacement of them all, they are comparing a contract cost to shop replacement costs over a 15-year period. a recent consultant identified that the problems of butterfly valves result in $85,000 in excess water usage per year basewide. while not every valve is replaceable, if the shops replace a portion of the valves each year over the 15 years, they expect to reduce the excess water usage 5% per year, starting year 2. to support the analysis, we will determine the present worth of the leakage costs of the shop-replacement option over the 15-year replacement period.

step 1: what is the term of analysis?
note: enter your answer only using numbers such as \1,234.56.\ do not use any characters (e.g. $, %, or years). likewise, do use commas to discriminate thousands and millions, and do use periods as decimal points. (us standard)

Explanation:

Identify the term of analysis

Using the Term of Analysis knowledge point

$$ N = 15 $$

Answer:

Step 1: What is the term of analysis? <blank>15</blank>