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0.5. Two mutually exclusive alternatives for office building refrigeration and air conditioning are being investigated. Their relevant costs and lives are summarized as follows: Absorption
0.5. 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, S 60.000 80,000 Annual operating expenses, $ 40,000 32,000 Salvage (market value, $ 12.000 Useful life, years The hurdle rate (MARR) is 15% per year and the study period is 18 years. What is the most efficient approach to identifying the best alternative when they have unequal lives (.e. 6 vs 9) with common multiple (i.e. 18 years)? According to the suggested approach, determine which chilling system should be recommended
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