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A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,087.00 to
A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,087.00 to install, $5,041.00 to operate per year for 7 years at which time it will be sold for $6,822.00. The second, RayCool 8, costs $41,806.00 to install, $2,028.00 to operate per year for 5 years at which time it will be sold for $9,097.00. The firms cost of capital is 6.32%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places.
A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,087.00 to install, $5,041.00 to operate per year for 7 years at which time it will be sold for $6,822.00. The second, RayCool 8, costs $41,806.00 to install, $2,028.00 to operate per year for 5 years at which time it will be sold for $9,097.00. The firms cost of capital is 6.32%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.
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Answer format: Currency: Round to: 2 decimal places.
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Payroll Accounting 2016
Authors: Bernard J. Bieg, Judith Toland
26th edition
978-1305665910, 1305665910, 1337072648, 978-1337072649
