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A vendor proposes an energy-efficient air compressor. The compressor will cost 30,000 USD installed and will require 1,000 USD maintenance each year for its life
A vendor proposes an energy-efficient air compressor. The compressor will cost 30,000 USD installed and will require 1,000 USD maintenance each year for its life of 20 years. Energy costs will be 4,000 USD per year. A standard air compressor will cost 20,000 USD and will require 800 USD maintenance each year. Its energy costs will be 10,000 USD per year. But it has an infinite lifetime. If your company uses an interest rate of 10%, calculate the capitalized cost (CC) of both compressors. Annual woth of energy efficient compressor is USD Capitalized cost of energy efficient compressor is USD Capitalized cost of standard compressor is Does it make sense to invest in the energy efficient air compressor? Why
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