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asap please help show work A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first,
asap please help show work
A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,852.00 to install, $5,074.00 to operate per year for 7 years at which time it will be sold for $7,107.00. The second, RayCool 8, costs $41,028.00 to install, $2,196.00 to operate per year for 5 years at which time it will be sold for $8,910.00. The firm's cost of capital is 6.89%. What is the equivalent annual cost of the AC360? Assume that there are no taxes. Answer format: Currency: Round to: 2 decimal places. A firm is consideting replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,840.00 to install, $5,135.00 to operate per year for 7 years at which time it will be sold for $6,862.00. The second, RayCool 8, costs $41,180.00 to install, $2,156.00 to operate per year for 5 years at which time it will bo sold for $9,081.00. The firm's cost of capital is 5.67%. What is the equivalent annual cost of the Faycool87 Assume that there are no taxes. Answer format: Currency: Round to: 2 decimal places Step by Step Solution
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