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
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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