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ANNUAL WORTH ANALYSIS -THCN AND NCW Background and information Mohamad, owner of an residential fumished apartments in Dubal, performed an econemic analysis 4 years ago

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ANNUAL WORTH ANALYSIS -THCN AND NCW Background and information Mohamad, owner of an residential fumished apartments in Dubal, performed an econemic analysis 4 years ago when he decided to place an nev eeflicient central AC unt for each apartments instead of old splt units windows bype in each room. The estimales used and the inntial worth analysis agy MARR = 12% are summartzed below. Twe different AC brande wore compered. The spreadsheet in below sheet is the one Mohamad used to make the decision. York was the clear choice due to its substantially larger AW value, hence Yosk 46 units were instalied. During a quick review (year 4 of operation), it was obvious that the maintenance costs and repas savings have not followed (and will not follow) the estimates made 4 years ago, In fact, the maintenance contract cost is going from $300 this year (year 4 ) to $1200 por yoar next year and will then increase 7% per year for the next 6 years. Also, the electrical power savings for the last 4 years were $31,312 ( year 1),$27,565( year 2 ). $30,493 ( year 3 ), and $32,903( year4), as best tas Mohamad can determine. He belioves savings will decrease by $3.349 per year hereafter. Finaly, theso 4 -year-old AC units are worth nothing on the market now, so the saivage is zero, not $3000. Q1 - Wh these new estimates, What is the AW of the Investment and Salvage value for YORK AC unit? Q2 - With these new estimates, What is the FW of the investment and Salvage value for YORK AC unit? Q3 - With these new estimates, what is the recalculated AW maintenance cost for the YORK AC units? Q4 - With these new estimates, what is the recalculated PW maintenance cost for the YORK AC units? Q5. With these newesumates, what is the recalculated Total AW for YORK AC units. 05. With these new estimates, what is the recalculated Total FW for YORK AC units: Q7 - With these new estimates, what is the recalculated Total PW for YOAK AC units. Q4. If these estimates had been made 4 years ago, would YORK stal have been the economic choice. why explain your answer Q9. What is difference in cepital recovery amount for the YORK units with these new estimates? Q10 - If MARR is changed to 8% for the upcoming 6 years what will be the Total PW for the YORK units

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