Consider two air-conditioning systems with the estimates below.

(a) Use AW analysis to determine the sensitivity of the economic decision to MARR values of 4%, 6%, and 8% per year.

(b) Develop the spreadsheet functions that will display the six AW values.

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System First cost, $ - 10,000 -17,000 AOC, $ per year -600 -150 Salvage value, $ New compressor and motor cost at midlife, $ -100 -300 -1,750 -3,000 Life, years 12