ost, $ -11,000 -15,000 5 per year -750 -175 e value, $ 100 300 котргessor and motor cost at -3,420 -1,650 ears 12 nual worth of air conditioning system 1 when the MARR is 4% is $-2782.925 0. nual worth of air-conditioning system 2 when the MARR Is 4% is $ nual worth of air-conditioning system 1 when the MARR is 6% is $ nual worth of alr-conditioning system 2 when the MARR Is 6% Is $
ost, $ -11,000 -15,000 5 per year -750 -175 e value, $ 100 300 котргessor and motor cost at -3,420 -1,650 ears 12 nual worth of air conditioning system 1 when the MARR is 4% is $-2782.925 0. nual worth of air-conditioning system 2 when the MARR Is 4% is $ nual worth of air-conditioning system 1 when the MARR is 6% is $ nual worth of alr-conditioning system 2 when the MARR Is 6% Is $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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2

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, $
-11,000
-15,000
AOC, $ per year
-750
-175
Salvage value, $
100
300
New compressor and motor cost at
midlife, $
-1,650
-3,420
Life, years
8
12
The annual worth of air-conditioning system 1 when the MARR is 4% is $-2782.925
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 $
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