A major hospital can purchase and install a used chiller unit for $192k. This unit could...

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A major hospital can purchase and install a used chiller unit for $192k. This unit could be in service for five more years, after which another used chiller could replace it. The alternative is to purchase a new unit having a ten year life for $360k. • The used chiller will have a scrap value of $20k at end of life. O&M costs for the used chiller are expected to be $40k next year, increasing by $10k every year thereafter. • For the new chiller the figure is $30k scrap at end of life. The anticipated O&M costs for the new chiller are $10k in year two, with a $5k annual increment thereafter. The hospital's MARR is 4% annually. Write a memorandum in which you recommend a course of action, supported by economic calculations in an attachment. A major hospital can purchase and install a used chiller unit for $192k. This unit could be in service for five more years, after which another used chiller could replace it. The alternative is to purchase a new unit having a ten year life for $360k. • The used chiller will have a scrap value of $20k at end of life. O&M costs for the used chiller are expected to be $40k next year, increasing by $10k every year thereafter. • For the new chiller the figure is $30k scrap at end of life. The anticipated O&M costs for the new chiller are $10k in year two, with a $5k annual increment thereafter. The hospital's MARR is 4% annually. Write a memorandum in which you recommend a course of action, supported by economic calculations in an attachment.

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YEARS PARTICULARS PVF USED CHILLER IN 000 PV OF USED CHILLER CASHFLOW in 000 NEW CHILLER IN 00... View the full answer