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A living roof is a roof of a building that is completely covered with grass or other vegetation planted over a waterproof layer (to protect the building interior). The Ford Motor Company's Rouge Plant in Dearborn, Michigan, is an example of a successful implementation of a living roof.

There are several benefits associated with a living roof including the following:

1.	Reduce heating and cooling costs for the building.
2.	Reduce stormwater runoff.
3.	Filter pollution out of air and water.
4.	Help to insulate building for sound.
5.	Create a habitat for various wildlife.
6.	Increase life of roof (as compared to a typical traditional roof). APlus Consultants, Inc., is investigating whether it should replace its current roof with a long-lasting composite roof or a living roof. A long-lasting composite roof would cost the company $1,800,000 and would last approximately 25 years. The annual maintenance costs on this composite roof would be approximately $18,000 per year. At the end of its useful life of 25 years, various components of the composite roof could be recycled and sold for $80,000. The costs associated with constructing the living roof total $2,050,000 and include the following: vegetation $360,000, waterproof membrane $135,000, growing medium (dirt) $170,000, living roof expert consultant fee $5,000, construction costs $760,000, and other miscellaneous fees $620,000. Maintenance on the living roof is estimated to be $58,000 per year. Management estimates that this living roof will last for 25 years. The following savings should result from the living roof: Heating and cooling costs will be reduced by $40,000 per year Stormwater treatment costs will be reduced by $5,000 per year Filtering system costs will be reduced by $16,000 per year The living roof would have no recyclable components to be sold at the end of its life. The company uses a 10% discount rate in evaluating capital investments Present Value of Annuity of $1

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