Two mutually exclusive alternatives for office building refrigeration and air conditioning are being investigated. Their relevant costs

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Two mutually exclusive alternatives for office building refrigeration and air conditioning are being investigated. Their relevant costs and lives are summarized as follows:

Absorption Compression Chilling (AC) Chilling (CC) Capital investment $80,000 $60,000 Annual operating 40,000 32,000 exp

If the hurdle rate (MARR) is 15% per year and the study period is 18 years, which chilling system should be recommended?

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Question Posted: Dec 06, 2018 10:05 AM

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Two mutually exclusive alternatives for office building refrigeration and air conditioning are being investigated. Their relevant costs

Question:

Absorption Compression Chilling (AC) Chilling (CC) Capital investment $80,000 $60,000 Annual operating 40,000 32,000 expenses Salvage (market) value 10,000 9 years Useful life 6 years

Step by Step Answer:

Assume repeatability over an 18year study period and compare equivalent uniform annual costs EUAC ...View the full answer

Engineering Economy

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