Question: Consider two air conditioning systems with the cash flow estimates as given below. Use AW analysis to determine the sensitivity of the economic decision to
Consider two air conditioning systems with the cash flow estimates as given below. Use AW analysis to determine the sensitivity of the economic decision to MARR values of 4%, 6%, and 8% per year. System First cost, AOC, $ per year Salvage value, s New compressor and motor cost at midlife, $ Life. years Air Conditioning System 1 -8,000 -800 -100 Air-Conditioning System 2 -12.000 -95 -300 -2,150 -3,100 The annual worth of air-conditioning system 1 when the MARR is 4% is SL The annual worth of air-conditioning system 2 when the MARR is 4% is $ The annual worth of air-conditioning system 1 when the MARR IS 6% is SC The annual worth of air-conditioning system 2 when the MARR IS 6% is S , The annual worth of air-conditioning system when the MARR IS 8% is $ the annual worth of air-conditioning system 2 when the MARR IS 8% is When the MARR is 4% [Click to select) is selected. When the MARR is 6% Click to select) is selected. When the MARR is 8% (Click to select) is selected
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