Question: In Problem 5-5, the projected savings in electricity bills rendered by the air conditioning system, which cost $100,000 to purchase and install, were calculated to

In Problem 5-5, the projected savings in electricity bills rendered by the air conditioning system, which cost $100,000 to purchase and install, were calculated to be $30,000 per year. The system's market value after 15 years was estimated to be $20,000. Use the FW method to determine whether the purchase of this equipment would be justified if the air conditioning system's market value after 15 years would be zero. The company is currently using a MARR of 20%.

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