5 Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to determine the sensitivity of theeconomic decision to MARR values of 4% 6%, and 8% per yearSystemAir-Conditioning System 1Air-Conditioning System 2First cost. $AOC, S per yearSalvage value. S-8,000-12.000-750-125-100-300New compressor and motor cost atmidife, S-1,650-2,700Life, years12The annual worth of air-conditioning system t when the MARR is 4% is $The annual worth of air-conditioning system 2 when the MARR is 4% is SThe annual worth of air-conditioning system 1 when the MARR is 6% is SThe annual worth of air-conditioning system 2 when the MARRs 6% is SThe annual worth of ar-conditioning system 1 when the MARR is 8%SThe annual worth of air-conditioning system 2 when the MARR is 8% is Sis selected.When the MARR is 4% 2is selectedWhen the MARR s 6% 1is selected.When the MARR is % 1

The annual worth is the net of the multitude of advantages and costs brought about more than a…

Air-Conditioning System 1 Air-Conditioning System 2 -12.000 -8,000 er year -750 -125 alue, $ -100 -300 pressor and motor cost at -1,650 -2700 12 al worth of air-conditioning system t when the MARR is 4% is S al worth of air-conditioning system 2 when the MARR is 4 is S al worth of air-conditioning system 1 when the MARR IS 6% isS wal worth of air-conditioning system 2 when the MARR 6SisS ual worth of air-conditioning system 1 when the MARR is 8S al worth of air-conditioning system 2 when the MARR is NisS

Air-Conditioning System 1 Air-Conditioning System 2 -12.000 -8,000 er year -750 -125 alue, $ -100 -300 pressor and motor cost at -1,650 -2700 12 al worth of air-conditioning system t when the MARR is 4% is S al worth of air-conditioning system 2 when the MARR is 4 is S al worth of air-conditioning system 1 when the MARR IS 6% isS wal worth of air-conditioning system 2 when the MARR 6SisS ual worth of air-conditioning system 1 when the MARR is 8S al worth of air-conditioning system 2 when the MARR is NisS

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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