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Posted by on September 19, 2006, 12:59 pm
xanuda wrote:
> Hi all. We are looking to replace our old furnace. We have had a few
> estimates and now we are trying to decide between an 80% and 90%
> efficient heaters and 1 stage / 2 stage / variable models. The price
> difference between 80% and 90% seems to be about 600-800 for Trane.
> The price difference between different stages is also several hundred
> $$$. How do we make a decision whether it is worth money to go with a
> more expansive model. I'm looking for a dummy-oriented advice as my
> knowledge here is pretty mich zero
> Thank you
> Gene
Pretty simple,
figure furnace life of 20 years, take last years furance energy cost,
is 10% of that times 20 less then the additional cost of a 80 to 90%
furnance? There is your answer (usually it is no, the 80% is
cheaper)....
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Posted by Steve Scott on September 19, 2006, 5:57 pm
Simple if you look at it that way. Let's say it costs $2000 more to
go to a 90+ unit and that you would reduce your current energy usage
by 12% (10/80 = 12.5%, not 10% savings) which amounts to $100 based on
last year's bill. So your $2000 investment generated an after tax ROI
of 5% at LAST year's fuel prices. Is it a good investment?
On 19 Sep 2006 09:59:09 -0700, bungalow_steve@yahoo.com wrote:
>xanuda wrote:
>> Hi all. We are looking to replace our old furnace. We have had a few
>> estimates and now we are trying to decide between an 80% and 90%
>> efficient heaters and 1 stage / 2 stage / variable models. The price
>> difference between 80% and 90% seems to be about 600-800 for Trane.
>> The price difference between different stages is also several hundred
>> $$$. How do we make a decision whether it is worth money to go with a
>> more expansive model. I'm looking for a dummy-oriented advice as my
>> knowledge here is pretty mich zero
>> Thank you
>> Gene
>Pretty simple,
>figure furnace life of 20 years, take last years furance energy cost,
>is 10% of that times 20 less then the additional cost of a 80 to 90%
>furnance? There is your answer (usually it is no, the 80% is
>cheaper)....
--
Be suspicious of all native-born
Esperanto speakers.
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Posted by on September 19, 2006, 7:10 pm
Steve Scott wrote:
> Simple if you look at it that way. Let's say it costs $2000 more to
> go to a 90+ unit and that you would reduce your current energy usage
> by 12% (10/80 = 12.5%, not 10% savings) which amounts to $100 based on
> last year's bill. So your $2000 investment generated an after tax ROI
> of 5% at LAST year's fuel prices. Is it a good investment?
depends what you do with that 5%, a CD interest will compound, this
type of investment won't
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Posted by Steve Scott on September 20, 2006, 6:41 am
You could argue the ever rising cost of fuel will act as compounding.
On 19 Sep 2006 16:10:11 -0700, bungalow_steve@yahoo.com wrote:
>Steve Scott wrote:
>> Simple if you look at it that way. Let's say it costs $2000 more to
>> go to a 90+ unit and that you would reduce your current energy usage
>> by 12% (10/80 = 12.5%, not 10% savings) which amounts to $100 based on
>> last year's bill. So your $2000 investment generated an after tax ROI
>> of 5% at LAST year's fuel prices. Is it a good investment?
>depends what you do with that 5%, a CD interest will compound, this
>type of investment won't
--
Be suspicious of all native-born
Esperanto speakers.
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Posted by on September 20, 2006, 9:53 am
Steve Scott wrote:
> You could argue the ever rising cost of fuel will act as compounding.
yes, and you could argue fuel costs have artificially risen over the
last few years and will stay steady or decline in the next decade,
people tend to always exaggerate trends into the future (whether it's
increasing fuel cost, stock market prices, or hurricane activity )
anyway, since I haven't met anyone who can accurately predict the
future, using current fuel costs are as good as guess as any for
furnace selection
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> estimates and now we are trying to decide between an 80% and 90%
> efficient heaters and 1 stage / 2 stage / variable models. The price
> difference between 80% and 90% seems to be about 600-800 for Trane.
> The price difference between different stages is also several hundred
> $$$. How do we make a decision whether it is worth money to go with a
> more expansive model. I'm looking for a dummy-oriented advice as my
> knowledge here is pretty mich zero
> Thank you
> Gene