Question: Two types of air conditioning systems are considered for an office building. Cost data for each system is given in the table below. At

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

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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