Heating Ventilating and Air Conditioning: Analysis and Design
Heating Ventilating and Air Conditioning: Analysis and Design
6th Edition
ISBN: 9780471470151
Author: Faye C. McQuiston, Jeffrey D. Spitler, Jerald D. Parker
Publisher: Wiley, John & Sons, Incorporated
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Chapter 1, Problem 1.8P

How much could a company afford to spend on an HVAC system that would bring monthly savings of $1000 over the entire 12-year life of the equipment? The company uses an annual interest rate of 12 percent in making investment projections.

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QBS company wishes to replace its current equipment that was purchased 8years ago with the newer technology. System A will have a first cost of P1.6M, an operating cost of P70,000 per year, and a salvage value of P400,000 after its 4-year life. System B will have a first cost of P2.1M, an operating cost of P50,000 the first year with an expected increase of P3,000 per year thereafter, and no salvage value after its 8-year life. On the basis of a future worth analysis at an interest rate of 12% per year, write the ANSWER for ALTERNATIVE A: Blank 1 ANSWER for ALTERNATIVE B: Blank 2 Blank 1 Add your answer Blank 2 Add your answer
1 and 2
: The output of a certain machine can be increased if it undergoes a major overhaul now and it will           result additional cash flow of $ 20,000 at the end of each year for “N”  years. If  i = 15 % per year,           how much can we afford to invest to overhaul this machine?

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Heating Ventilating and Air Conditioning: Analysis and Design

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