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 MARR

 Consider two air-conditioning systems with the cash flow estimates as given

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 Air-Conditioning System 1 Air-Conditioning System 2 First cost. $ -12,000 -16,000 AOC, $ per year -550 -135 Salvage value, $ -100 -300 New compressor and motor cost at -1.450 -3,260 midlife, $ Life, years 8 12 The annual worth of air-conditioning system 1 when the MARR is 4% is $ 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 $ The annual worth of air-conditioning system 2 when the MARR is 6% is $ 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)y is selected When the MARR is 6% (Click to select) Mis selected When the MARR IS 8% (Click to select)y is selected

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