Conduct a parametric study of the economic selection problem given in Problem 2.29. Plot the annual cost of systems A, B, and C as a function of the MARR for the range 0 ≤ MARR ≤ 25%. Discuss the results.

Problem 2.29

Three alternatives are being considered for an air cleaning system. All three systems have a life of 10 years with no salvage value. System A has an initial cost of $29,000. During the first five years of operation, the annual costs to operate system A are $5,000. During the second five years, the annual cost of system A increases to $16,000. System B has an initial cost of $43,000. The annual cost to operate system B is $4,000, however after the first year, this cost increases by $1,600 per year. System C has an initial cost of $58,000 with an annual cost of $2,400. System C requires two upgrades; one during year 4 which costs $6,000, and the other during year 8 which costs $3,000. The MARR for this project is 17%. Determine which air cleaning system should be installed based on an economic analysis.