Question

Four hundred pounds of copper are used in a typical 2 comma 1002,100​-square-foot newly constructed house.​ Today's copper price is ​$3.503.50 per pound. a. If copper prices are expected to increase 8.48.4​% per year​ (on average), what is the cost of copper going to be in a new 2 comma 3002,300​-square-foot house built 1111 years from​ now? Use a​ cost-capacity factor of 1.0. b. To minimize building​ costs, do you think that another​ less-expensive material​ (e.g., aluminum) will be substituted for copper in the electrical wiring in new​ homes?

Answer 1

Step-by-step explanation:

2,100 square foot house consists of 400 pounds copper which costs $3.5 per pound:

Cost of copper in 2,300 square foot house = $3.5 * 400 (2300/2100) = $1533.33

Cost of copper 11 years from now = $1533.33 * (1+0.084)^11 = $3723.55

To minimize building​ costs, do you think that another​ less-expensive material​ (e.g., aluminum) will be substituted for copper in the electrical wiring in new​ homes?

Yes, it can be substituted for another less expensive material with a proper factor of safety. However, heat loss or power loss is in aluminum is higher (electrical conductivity of copper is greater). Also, maintenance cost of aliminum wire is higher.