Question: How to solve using calcuator. Please write the equation. Two mutually exclusive alternatives for office building refrigeration and air conditioning are being investigated. Their relevant
How to solve using calcuator. Please write the equation.
Two mutually exclusive alternatives for office building refrigeration and air conditioning are being investigated. Their relevant costs and lives are summarized as follows: If the hurdle rate MARR is per year and the study period is years, which chilling system should be recommended?
tabletableAbsorptionChilling ACtableCompressionChilling CCCapital Investment,$$tableAnnual OperatingExpensestableSalvage marketvalueUseful Life, years, years
Step
Compute of EUAC for both types of compression Absorption Chilling AC Compression Chilling CC is calculated below:
EUACAC$$$
$$$
$
EUACCC$$
$$
$
Thus, the EUAC for AC and CC is $ and $ respectively.
On the basis of EUAC, Chilling Compression should be recommended.
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