Air-Conditioning System 1 Air-Conditioning System 2 -12.000 -8,000 er year -750 -125 alue, $ -100 -300 pressor and motor cost at -1,650 -2700 12 al worth of air-conditioning system t when the MARR is 4% is S al worth of air-conditioning system 2 when the MARR is 4 is S al worth of air-conditioning system 1 when the MARR IS 6% isS wal worth of air-conditioning system 2 when the MARR 6SisS ual worth of air-conditioning system 1 when the MARR is 8S al worth of air-conditioning system 2 when the MARR is NisS

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Question
5
Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to determine the sensitivity of the
economic decision to MARR values of 4% 6%, and 8% per year
System
Air-Conditioning System 1
Air-Conditioning System 2
First cost. $
AOC, S per year
Salvage value. S
-8,000
-12.000
-750
-125
-100
-300
New compressor and motor cost at
midife, S
-1,650
-2,700
Life, years
12
The annual worth of air-conditioning system t when the MARR is 4% is $
The annual worth of air-conditioning system 2 when the MARR is 4% is S
The annual worth of air-conditioning system 1 when the MARR is 6% is S
The annual worth of air-conditioning system 2 when the MARRs 6% is S
The annual worth of ar-conditioning system 1 when the MARR is 8%S
The annual worth of air-conditioning system 2 when the MARR is 8% is S
is selected.
When the MARR is 4% 2
is selected
When the MARR s 6% 1
is selected.
When the MARR is % 1
Transcribed Image Text:Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to determine the sensitivity of the economic decision to MARR values of 4% 6%, and 8% per year System Air-Conditioning System 1 Air-Conditioning System 2 First cost. $ AOC, S per year Salvage value. S -8,000 -12.000 -750 -125 -100 -300 New compressor and motor cost at midife, S -1,650 -2,700 Life, years 12 The annual worth of air-conditioning system t when the MARR is 4% is $ The annual worth of air-conditioning system 2 when the MARR is 4% is S The annual worth of air-conditioning system 1 when the MARR is 6% is S The annual worth of air-conditioning system 2 when the MARRs 6% is S The annual worth of ar-conditioning system 1 when the MARR is 8%S The annual worth of air-conditioning system 2 when the MARR is 8% is S is selected. When the MARR is 4% 2 is selected When the MARR s 6% 1 is selected. When the MARR is % 1
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