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(A) a Future Home Owner Is Specifying Construction Materials for a New

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(a) A future home owner is specifying construction materials for a new home in Edmonton, AB\mathrm { AB } . The home is heated with electric heat at a cost of $0.11\$ 0.11 per kWh\mathrm { kWh } . There are 200 m2200 \mathrm {~m} ^ { 2 } of exterior walls consisting of 5 cm5 \mathrm {~cm} of wood with space for 15 cm15 \mathrm {~cm} thick insulation. If fiberglass loose-fill insulation would cost $2500\$ 2500 and polystyrene foam sheet insulation would cost $4000\$ 4000 , what is the payback period for the additional investment in polystyrene?
(b) Repeat part (a) for the same home being built in San Francisco, CA.
See Chapter 8 for additional useful information.

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