Solve this problem using Excel and submit the Excel spreadsheet via Canvas. An aircraft hangar requires a new high-efficiency HVAC system for environmental control and reducing heating and cooling expenses. Three alternative HVAC systems are available as follows: HVAC-1 HVAC-2 HVAC-3 Capital Investment Annual Expenses Annual Savings $6,000,000 $80,000 $6,500,000 $60,000 $5,500,000 $40,000 $600,000 $650,000 $550,000 Useful Life = 20 25 18 Residual Value = Company's MARR = 15% Using a cost-only present worth analysis recommend which HVAC system should be purchased and state your reason. (Note: You don't need to show the annual cash flow in the spreadsheet).
Solve this problem using Excel and submit the Excel spreadsheet via Canvas. An aircraft hangar requires a new high-efficiency HVAC system for environmental control and reducing heating and cooling expenses. Three alternative HVAC systems are available as follows: HVAC-1 HVAC-2 HVAC-3 Capital Investment Annual Expenses Annual Savings $6,000,000 $80,000 $6,500,000 $60,000 $5,500,000 $40,000 $600,000 $650,000 $550,000 Useful Life = 20 25 18 Residual Value = Company's MARR = 15% Using a cost-only present worth analysis recommend which HVAC system should be purchased and state your reason. (Note: You don't need to show the annual cash flow in the spreadsheet).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Solve this problem using Excel and submit the Excel spreadsheet via Canvas.
An aircraft hangar requires a new high-efficiency HVAC system for environmental control and reducing
heating and cooling expenses. Three alternative HVAC systems are available as follows:
HVAC-1
HVAC-2
HVAC-3
Capital Investment
$6,000,000
$80,000
$6,500,000
$60,000
$650,000
$5,500,000
$40,000
$550,000
Annual Expenses
Annual Savings
Useful Life =
$600,000
20
25
18
Residual Value =
Company's MARR =
15%
Using a cost-only present worth analysis recommend which HVAC system should be purchased and state
your reason. (Note: You don't need to show the annual cash flow in the spreadsheet).
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