5. Joe needs a new HVAC system for his home. He is comparing these three models. One Temp $7000 Super D-Luxe $20,000 $2000 $1500 15 years $2000+60*5 1st Cost Annual Energy Useful Life Salvage Value 7 years $500+50 Happier Home $11,000 $1100 10 years $1000+40*5 Martha's family plans to live in this house indefinitely. With a 8% interest rate, based on cost, which HVAC system would you recommend? Justify your answer.

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Author:Steven A. Greenlaw; David Shapiro
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Chapter17: Financial Markets
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please show all calculations for answer.

5. Joe needs a new HVAC system for his home. He is comparing these three models.
One Temp
$7000
$1500
Super D-Luxe
$20,000
$2000
15 years
$2000+60*5
1st Cost
Annual Energy
Useful Life
Salvage Value
7
7 years
$500+50
Happier Home
$11,000
$1100
10 years
$1000+40*5
Martha's family plans to live in this house indefinitely. With a 8% interest rate, based on
cost, which HVAC system would you recommend? Justify your answer.
Transcribed Image Text:5. Joe needs a new HVAC system for his home. He is comparing these three models. One Temp $7000 $1500 Super D-Luxe $20,000 $2000 15 years $2000+60*5 1st Cost Annual Energy Useful Life Salvage Value 7 7 years $500+50 Happier Home $11,000 $1100 10 years $1000+40*5 Martha's family plans to live in this house indefinitely. With a 8% interest rate, based on cost, which HVAC system would you recommend? Justify your answer.
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