NewEnvironments: Home Improvement

Suppose I am pondering the following home improvements:

New windows, which costs $20K to install and will save $200 in heating and cooling costs per year;
Attic insulation, which cost $1K to install and will save $350 in heating and cooling costs per year;
A new furnace, which costs $1K to install and will save $120 in heating and cooling costs per year;
Wall insulation, which costs $3K to install and will save $200 in heating and cooling costs per year.

Assume that all the investments will last 20 years, that I face a MARR of 0%, and that I am not allowed to spend more than $21K. Further assume that my wife will not let me take on more than two projects.

Which projects should I do?

A) New windows
B) New furnace
C) Attic insulation
D) Wall insulation

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