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 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 600 105 Salvage value, $ 100 300 New compressor and motor cost at midlife, $ 1,950 2,620 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 1 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.
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. 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 1 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% is selected
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
