Two chillers are proposed to cool an office space. Each chiller has a rated capacity of 300 tons and is expected to operate 650 full-load equivalent hours per year. Chiller A has a standard efficiency with a COP of 3.0 and costs $160,000, whereas chiller B is more efficient with a COP of 3.5 at a cost of $210,000. The electricity cost is estimated to be $0.08/kWh. For a lifetime of 20 years and a discount rate of 5 percent,

a. Estimate the payback time for using chiller B instead of chiller A.

b. Calculate the LCCs for both chillers. Conclude.

c. Estimate the ROR for using chiller B instead of chiller A.

d. Determine the highest cost for chiller B at which chiller A is more competitive.

e. Determine the cutoff electricity price at which both chillers A and B have the same LCC.

Assume that the average cost of electricity is $0.06/kWh.