CNSE STUDY ANNUAL WORTH ANALYSTS - THEN AND NOW Background and lelortnation Mohamad, owner of an residential fumished apartments in Dubal, perlomed an economio arolysis 5 years ago when he decided to plnce an neer eefliciont central AC unit for eoch apartments instead of old split unts windows type in ead room. The mstmates used and the annual worth aralyeis at MARR = 12% are summarized below. Two diffecont AC brande wew compared. The noresdshed in below sheet is the one Mohamad ubed to makn the decision. York Was the dear eholoe due to ith eubatantialy lacger AW value. hence Yokk AC units. were installed The spresdsheet in below sheet is the one Mohamnd used to make the decision. York was tho clear choice due to iks substantially larger AW valuo, hence York AC units waide instwilent During a quick review (yea 5 of operation), it was obvious that the mointenance costs and regair savings have not followed (and will not follow) the estimates mode 5 years age. In fact, the maintenance contract cost is going from 5300 this year (year 5 ) to 51200 per year next year and will then increase 9% per year for the next 4 years ( up to year 10). Also, the electrical power savings for the last 5 years were $31,312( year 1), $75,565( year 2). $25,234( year 3 ), $26,903( yeard), and $27,345(year5) as best as Mohamad can determine. He beeves savings will decrease by 51.200 per year hereofter. Finally, these 5 -year-old AC units are worth nothing on the market now, so the salvege in is zero, not $3000. During a quick review (year 5 of operation) it was obvous that the mainlenance costs and repair savings have not followed (and will not follow) the estimates made 5 years ago. In fact, the maintenance contract cost is going trom $300 this year (year 5 ) to $1200 per year next year and wil then increase 9% per year for the next 4 years ( up to yoar 10). Also, the electrical power savings for the lest 5 years were $31,312 ( yoar 1 ), $25,565( year 2), $25,234( year 3 ), $26,903 y yeard), and $27,345 (year5) as best as Mohamad can determine. He believes sovings will decrease by $1,200 per year herenter. Findlly, theso 5 -year-old AC units are worth noching on the market now, so the salvage in is zero, not 53000 . Q1 - With these new estimstes, What is the AW of the lnvestment and Sakage value for YORK AC unit? Q2 - With these new estimates, What is the FW of the investment and Salvage value for YOPK AC unlt Q3 - With these new estimates, what is the recaleulased AW maintehance cost for the YOPCAC units? Q4 - With these new estimates, what is the recalculated PW maintenance cost for the YORK AC units O5- With these new estimates, what is the recalculated Total AW for YOPK AC units Q6 - Wich these new estimates, what is the recaiculated Total FW for YOPKAC units. Q7. With these new estimates, what is the recalculated Total PW for YOAK AC units. Q6 - If these estimates had been made 5 yoars ago, would YoRK stl have been the economic choice, wty explain yout answer Q9 - What is difference in capilal recovery amount for the YORK units with these neW estimates? Q10. I MARR is changed to 10% for the upcoming 5 years what will be the Total PW for the YORK Units? CNSE STUDY ANNUAL WORTH ANALYSTS - THEN AND NOW Background and lelortnation Mohamad, owner of an residential fumished apartments in Dubal, perlomed an economio arolysis 5 years ago when he decided to plnce an neer eefliciont central AC unit for eoch apartments instead of old split unts windows type in ead room. The mstmates used and the annual worth aralyeis at MARR = 12% are summarized below. Two diffecont AC brande wew compared. The noresdshed in below sheet is the one Mohamad ubed to makn the decision. York Was the dear eholoe due to ith eubatantialy lacger AW value. hence Yokk AC units. were installed The spresdsheet in below sheet is the one Mohamnd used to make the decision. York was tho clear choice due to iks substantially larger AW valuo, hence York AC units waide instwilent During a quick review (yea 5 of operation), it was obvious that the mointenance costs and regair savings have not followed (and will not follow) the estimates mode 5 years age. In fact, the maintenance contract cost is going from 5300 this year (year 5 ) to 51200 per year next year and will then increase 9% per year for the next 4 years ( up to year 10). Also, the electrical power savings for the last 5 years were $31,312( year 1), $75,565( year 2). $25,234( year 3 ), $26,903( yeard), and $27,345(year5) as best as Mohamad can determine. He beeves savings will decrease by 51.200 per year hereofter. Finally, these 5 -year-old AC units are worth nothing on the market now, so the salvege in is zero, not $3000. During a quick review (year 5 of operation) it was obvous that the mainlenance costs and repair savings have not followed (and will not follow) the estimates made 5 years ago. In fact, the maintenance contract cost is going trom $300 this year (year 5 ) to $1200 per year next year and wil then increase 9% per year for the next 4 years ( up to yoar 10). Also, the electrical power savings for the lest 5 years were $31,312 ( yoar 1 ), $25,565( year 2), $25,234( year 3 ), $26,903 y yeard), and $27,345 (year5) as best as Mohamad can determine. He believes sovings will decrease by $1,200 per year herenter. Findlly, theso 5 -year-old AC units are worth noching on the market now, so the salvage in is zero, not 53000 . Q1 - With these new estimstes, What is the AW of the lnvestment and Sakage value for YORK AC unit? Q2 - With these new estimates, What is the FW of the investment and Salvage value for YOPK AC unlt Q3 - With these new estimates, what is the recaleulased AW maintehance cost for the YOPCAC units? Q4 - With these new estimates, what is the recalculated PW maintenance cost for the YORK AC units O5- With these new estimates, what is the recalculated Total AW for YOPK AC units Q6 - Wich these new estimates, what is the recaiculated Total FW for YOPKAC units. Q7. With these new estimates, what is the recalculated Total PW for YOAK AC units. Q6 - If these estimates had been made 5 yoars ago, would YoRK stl have been the economic choice, wty explain yout answer Q9 - What is difference in capilal recovery amount for the YORK units with these neW estimates? Q10. I MARR is changed to 10% for the upcoming 5 years what will be the Total PW for the YORK Units