Question: Please explain to me the solution with the equations in detail Question 3: (15 Marks] Here are three alternatives for the heating, ventilation, and air

Please explain to me the solution with the equations in detail Please explain to me the solution with the equations in detail Question

Question 3: (15 Marks] Here are three alternatives for the heating, ventilation, and air conditioning (HVAC) system for a hospital. Alternatives A B 52,000,000 $2,300,000 $2,250,000 Purchase and Installation Cost $ 80,000 $ 50,000 $ 70,000 Annual Operating Expense Annual Maintenance Expense $ 20,000 $ 14,000 $ 19.000 Market Value (Salvage Value) $ 0 $ Useful Life (years) 15 18 16 a) Determine X by implementing a straight line (SL.) depreciation method vith an annual depreciation deduction of $130,000 MEBV-|-!5/17... b) Calculate Y by using a 289.9% declining balance (DB) depreciation method. ? c) Which alternative do you recommend? Use the coterminated life assumption with a study period of 16 years and MARR of 12% per year. State all o her assumptions

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