Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to dem economic decision to MARR values of 4%, 6%, and 8% per year. System Air-Conditioning System 1 Air-Conditioning System 2 First cost, $ -9,000 -13,000 AOC, $ per year -500 -175 Salvage value, $ -100 -300 New compressor and motor cost at midlife, $ -1,400 -2,900 Life, years 8 12 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 $[
Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to dem economic decision to MARR values of 4%, 6%, and 8% per year. System Air-Conditioning System 1 Air-Conditioning System 2 First cost, $ -9,000 -13,000 AOC, $ per year -500 -175 Salvage value, $ -100 -300 New compressor and motor cost at midlife, $ -1,400 -2,900 Life, years 8 12 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 $[
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to dete
economic decision to MARR values of 4%, 6%, and 8% per year.
System
Air-Conditioning System 1
Air-Conditioning System 2
First cost, $
-9,000
-13,000
AOC, $ per year
-500
-175
Salvage value, $
-100
-300
New compressor and motor cost at
midlife, $
-1,400
-2,900
Life, years
8
12
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 $1
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 $
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