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1. A company has decided to air condition their manufacturing facility. They are trying to decide between an absorption refrigeration system and a vapor compression
1. A company has decided to air condition their manufacturing facility. They are trying to decide between an absorption refrigeration system and a vapor compression refrigeration system. The following economic data is available: Capital Cost Annual Operating Cost Absorption System Vapor Compression System $125,000 $85,000 $15,000 $20,000 The life of both systems is estimated to be 15 years and the interest rate for the company is 13%. Using a present value analysis determine which system should be purchased. What would be the annual operating cost of the vapor compression system needed to make the two systems equivalent in terms of cost
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