Question:
I am still confused on the section of question 4 about the avoided annual cost. What information is used to calculate these values?
Answer:
The logic of avoided dollar cost is that the “green” construction option reduces the amount of water that runs off the property. Because the municipality charges to treat the sewer water, reducing the amount the runs off saves on the fees that the property owner pays each year.
You are given the information to calculate the average annual avoided water runoff and thus to calculate the dollars that the property owner doesn’t have to pay in fees.
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