.What is the equivalent annual cost of the Econo-Col model? (Do not round imermediate calculations. Round your answers to 2 decimal pleces) Econo Coel Equvalart annual cost .What is the equivalent annual cost of the Lunury Ar model? (Do not round intermediate calculetions. Round your answers to 2 decimel pleces) Luury A Equvalent annual cost
.What is the equivalent annual cost of the Econo-Col model? (Do not round imermediate calculations. Round your answers to 2 decimal pleces) Econo Coel Equvalart annual cost .What is the equivalent annual cost of the Lunury Ar model? (Do not round intermediate calculetions. Round your answers to 2 decimel pleces) Luury A Equvalent annual cost
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Econo-Cool air conditioners cost $320 to purchase, result in electricity bills of $154 per year, and last for 5 years. Luxury Air modeis
cost $520, resuit in electricity bils of $108 per year, and last for 8 years. The discount rate is 25%.
a. What is the equivalent annual cost of the Econo-Cool model? (Do not round intermediate calculations, Round your answers to 2
decimal pleces.)
Econo-Cool
Equivalent annual cost
b. What is the equivalent annual cost of the Luxury Air model? (Do not round intermediete calculations. Round your answers to 2
decimal pleces.)
Luxury Air
Equivalent annual cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febeb44d7-2b3c-4f72-af42-4e05dc6af26d%2Fcb0ac2aa-f1be-4a3d-a596-ff2190bd0b85%2Fbuf18jq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Econo-Cool air conditioners cost $320 to purchase, result in electricity bills of $154 per year, and last for 5 years. Luxury Air modeis
cost $520, resuit in electricity bils of $108 per year, and last for 8 years. The discount rate is 25%.
a. What is the equivalent annual cost of the Econo-Cool model? (Do not round intermediate calculations, Round your answers to 2
decimal pleces.)
Econo-Cool
Equivalent annual cost
b. What is the equivalent annual cost of the Luxury Air model? (Do not round intermediete calculations. Round your answers to 2
decimal pleces.)
Luxury Air
Equivalent annual cost
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