Question
An enterprise has used air conditioning in its administration building for approximately 15 years. It is considering having a new generation system instead of the
An enterprise has used air conditioning in its administration building for approximately 15 years. It is considering having a new generation system instead of the system. The new system is 10 years old. In the period, it will save 270,000 kWh of electricity per year and the turnkey cost is 250,000 $ will be. 1 kWh electricity cost is 0.20 $. Business, economics of the renewed system will use the MAAR at 15% for its assessment. The market at the end of 10 years of the system Its value is 18,000 $ and its annual operating and maintenance costs are negligible. Decide whether to install the system using the present value method.
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