2 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 year.SystemAir-Conditioning System 1Air-Conditioning System 2First cost, $-11,000-15,000AOC, $ per year-750-175Salvage value, $100300New compressor and motor cost atmidlife, $-1,650-3,420Life, years812The annual worth of air-conditioning system 1 when the MARR is 4% is $-2782.925The 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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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 $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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