Consider the following advertisement, based on one which appeared in a local paper.
Pools-Spas-Hot Tubs-Pure Water Without Toxic Chemicals: The comparative costs between the conventional chemical system (chlorine) and the IONETICS systems are as given in Table P6.18.
The IONETICS system pays for itself in less than two years.

Assume that the IONETICS system has a 12-year service life and the interest rate is 6%. What is the equivalent annual cost of operating the IONETICS system?

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Conventional 1ONETICS System System Item Annual costs $471 Chemical IONETICS Pump (S0.667/k Wh) $ 85 $576 $100 Capital investment $1,200