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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. Air-Conditioning System 1 Air-Conditioning System 2 System First cost, $ AOC, $ per year Salvage value, $ New compressor and motor cost at midlife, $ Life, years The annual worth of air-conditioning system 1 when the MARR is 4% is $ The annual worth of air-conditioning system 2 when the MARR is 4% is $ The annual worth of air-conditioning system 1 when the MARR is 6% is $ The annual worth of air-conditioning system 2 when the MARR is 6% is $ The annual worth of air-conditioning system 1 when the MARR is 8% is $ The annual worth of air-conditioning system 2 when the MARR is 8% is $ When the MARR is 4% When the MARR is 6% 2 2 When the MARR is 8% 2 is selected. is selected. -11,000 -650 -100 is selected. -1,550 8 -15,000 -105 -300 -2,620 12

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. Air-Conditioning System 1 Air-Conditioning System 2 System First cost, $ AOC, $ per year Salvage value, $ New compressor and motor cost at midlife, $ Life, years The annual worth of air-conditioning system 1 when the MARR is 4% is $ The annual worth of air-conditioning system 2 when the MARR is 4% is $ The annual worth of air-conditioning system 1 when the MARR is 6% is $ The annual worth of air-conditioning system 2 when the MARR is 6% is $ The annual worth of air-conditioning system 1 when the MARR is 8% is $ The annual worth of air-conditioning system 2 when the MARR is 8% is $ When the MARR is 4% When the MARR is 6% 2 2 When the MARR is 8% 2 is selected. is selected. -11,000 -650 -100 is selected. -1,550 8 -15,000 -105 -300 -2,620 12

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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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. Air-Conditioning System 1 Air-Conditioning System 2 System First cost, $ AOC, $ per year Salvage value, $ New compressor and motor cost at midlife, $ Life, years The annual worth of air-conditioning system 1 when the MARR is 4% is $ The annual worth of air-conditioning system 2 when the MARR is 4% is $ The annual worth of air-conditioning system 1 when the MARR is 6% is $ The annual worth of air-conditioning system 2 when the MARR is 6% is $ The annual worth of air-conditioning system 1 when the MARR is 8% is $ The annual worth of air-conditioning system 2 when the MARR is 8% is $ is selected. When the MARR is 4% When the MARR is 6% When the MARR is 8% 2 2 2 is selected. -11,000 -650 -100 is selected. -1,550 8 -15,000 -105 -300 -2,620 12
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. Air-Conditioning System 1 Air-Conditioning System 2 System First cost, $ AOC, $ per year Salvage value, $ New compressor and motor cost at midlife, $ Life, years The annual worth of air-conditioning system 1 when the MARR is 4% is $ The annual worth of air-conditioning system 2 when the MARR is 4% is $ The annual worth of air-conditioning system 1 when the MARR is 6% is $ The annual worth of air-conditioning system 2 when the MARR is 6% is $ The annual worth of air-conditioning system 1 when the MARR is 8% is $ The annual worth of air-conditioning system 2 when the MARR is 8% is $ is selected. When the MARR is 4% When the MARR is 6% When the MARR is 8% 2 2 2 is selected. -11,000 -650 -100 is selected. -1,550 8 -15,000 -105 -300 -2,620 12
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