Question: 2. (35 points) The Mowbot plant must replace an existing HVAC unit (doing nothing is not an option). You are evaluating two pieces of equipment

2. (35 points) The Mowbot plant must replace an existing HVAC

2. (35 points) The Mowbot plant must replace an existing HVAC unit (doing nothing is not an option). You are evaluating two pieces of equipment (Unit A and Unit B). Each unit offers a saving in annual energy cost over the existing equipment. Unit A $44,000 Unit B $65,000 Up front cost Operating cost/year Energy savings/year $1,900 $1,400 $18,000 $19,500 Salvage Value $2,000 $4,000 Economic life, years 5 7 Mowbot's MARR is 18%. Based on annual worth analysis (not incremental), which unit should you recommend

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