Two types of air conditioning systems are considered for an office building. Cost data for each...

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Two types of air conditioning systems are considered for an office building. Cost data for each system is given in the table below. At interest rate of 11%, which system is more economical based on the annual equivalent criterion? (All amounts are in SR). SYSTEM A 775 000 15 years 150 000 kwh SR 0.2/kwh 15 500 10 000 every 10 years Initial cost Life Annual electricity consumption Electricity cost Annual O&M cost Compressor replacement cost SYSTEM B 1 100 000 15 years 25 600 kwh SR 0.2/kwh 14 500 0 Two types of air conditioning systems are considered for an office building. Cost data for each system is given in the table below. At interest rate of 11%, which system is more economical based on the annual equivalent criterion? (All amounts are in SR). SYSTEM A 775 000 15 years 150 000 kwh SR 0.2/kwh 15 500 10 000 every 10 years Initial cost Life Annual electricity consumption Electricity cost Annual O&M cost Compressor replacement cost SYSTEM B 1 100 000 15 years 25 600 kwh SR 0.2/kwh 14 500 0

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System A initial cost SR 775000 System A life 15 years System A annual electricity consumption 15000... View the full answer